US Daily Oil Summary: Gasoline and Diesel Demand Falling

Spot diesel USGC has fallen to a discount of 12.38 cents/gal discount against NYMEX futures, the widest discount since December, according to Bloomberg. The widening discount is the result of building inventories and softening demand. Regional inventories of USLD have risen despite seasonal maintenance at US refineries.

• US gasoline demand Nov. 7 was 5.7% below the same day in the previous week, according to GasBuddy’s Patrick De Haan, putting it around 4% below last week’s average.
• The US could reimpose energy sanctions on Venezuela if commitments towards free elections and the release of more political prisoners are not met by 30 November according to White House senior adviser Juan Gonzales.
• API weekly oil stock data from late yesterday according to Bloomberg: Crude +11.9mbbl, Cushing +1.1mbbl, Gasoline -0.4mbbl, Distillate +1mbbl
• USD: Early greenback strength saw the USD index rise around 0.35%, reversing the entirety of the post-NFP sell-off. However, the move lower for US yields in a flattening move prompted some renewed dollar weakness which has seen the USD index slip into negative territory approaching the APAC crossover.
• Ten days out from a government shutdown and there has been no plan released by House Republican leadership on strategy for a stopgap funding solution.
• Chinese President Xi Jinping is expected to meet top US business executives at APEC next week: A summit which could provide a major recalibration of economic ties between Beijing and Washington.