Market Currents: Colonial pipeline outage leaves imbalanced gasoline markets
Thursday September 22, 2016
1) We had Abudi Zein’s balloon analogy play out as expected in yesterday’s EIA gasoline data, as the Colonial pipeline outage did indeed pressure PADD1 gasoline inventories lower, like pressing down on a balloon…
…while we saw gasoline inventories swell on the Gulf Coast. While the East Coast inventory draw was led by a 6mn barrel draw from the Southeast (PADD 1c), accounting for the majority of the 8.5mn bbl drop, the Gulf Coast experienced a 4.8mn bbl pop:
