SHORTED ANOTHER 1000 SHARES OF VLO
This time the price was $67.60.
There was a huge increase in product inventories this week–8.4 million barrels.
“Products” are the things like gasoline, jet fuel, home heating oil etc…what refineries make. Total product inventories are now above the upper end of the five year range.
Distillates are up 6.1 million barrels, though the main reason for that is the energy industry itself–it used a lot of distillates in producing oil and gas and now they’re not doing that as much.
Last week I was nervous about shorting VLO in case the weekly build was due to interruption of barge traffic in the Gulf Coast. This week’s build says it was more likely a lack of demand and that refineries are running ahead of demand–throughput will have to come down.
And WTI is above Brent today.
About half the refinery stocks I follow have come down, but TSO and particlularly VLO have not.
If the broader US markets can’t rally in the next couple days, I’ll be selling the rest of my
POWR and SSNI and waiting for this market to settle down and find a bottom.
Distillate fuel inventories increased by 6.1 million barrels last week, also crossing above the upper limit of the five-year average range for this time of year.