Oil Markets Fall After Bearish EIA Gasoline Report

July West Texas Intermediate crude oil settled down $1.35 at $77.91 bbl, unable to hold gains even after a bullish Energy Information Administration inventory report showing oil stocks were down 4.2 million bbl. Instead, the bearish gasoline and diesel inventory report showing an increase in stocks pressured the oil market. The July Brent crude oil contract ended the session down $1.74 at $81.86 bbl. Traders are looking ahead to Friday's Personal Consumption Expenditures Price Index and what it may mean for interest rates going forward. "The PCE price index is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior," according to the Bureau of Economic Analysis. Also on their radar is the Sunday meeting of OPEC+.

June RBOB closed down 5.98 cents at $2.4046 gallon as the market was unhappy with the EIA reporting an unexpected increase in gasoline stocks of 2 million bbl last week. In addition, EIA reported gasoline demand was down 167,000 bpd. Remember that last week was hailed as the start of the summer driving season and maybe we will see better numbers next week that will encompass the entire Memorial Day holiday weekend.