Refinery margins tank… Reuters

Despite good gasoline demand numbers, gasoline stocks are more than adequate:

“Inventories have grown despite evidence that U.S. motor travel continues to surge. Analysts noted that U.S. refiners switched to maximum gasoline mode earlier than usual during a fleeting moment of high margins in the early part of 2016. Imports also have been higher than normal in recent weeks, adding to the glut.”

And here is our own Andy Lebow:

“”PADD 1 is a holy mess,” said Andrew Lebow, senior partner at Commodity Research Group in Darien, Connecticut. “It is very unusual. If a market becomes extremely oversupplied, like PADD 1, they are going to have to cut runs.””

Here is the Reuters link: (http://www.reuters.com/article/usa-refineries-cuts-east-coast-idUSL1N19S291)