Crude prices have softened since April 1 (down $2.59 or 3%) and primarily due to release of unfavourable North American and European economic data.  Refined product wholesale pricing has dropped, as well as a combination of increased imports, increased domestic production and reduced demand has resulted in increased inventory levels.  The increased domestic production is related to the post-maintenance increased refinery utilization which for the Atlantic Coast now stands at 88.3%.  The increased imports appear to be related to the dumping of European winter gas in New York Harbour.  Reduced demand observed is directly related to the sluggish recovery of the U.S. economy.

The U.S. Energy Department ("DOE") petroleum inventory assessment, issued April 10, 2013, reported a small increase in U.S. commercial crude stocks of 250,000 million barrels.  U.S. commercial crude inventory levels are at a 22 year high. The last time inventory levels were at this level was July, 1990.
 
U.S. gasoline inventories increased over the previous reporting period.  A small increase in refinery utilization ("production") and reduced demand are noted in the DOE report.  Analysts had expected a decline in inventory as seasonal inventory draws are generally expected this time of year when wholesalers build inventories to supply summer driving season.
 
Distillate inventories decreased slightly with demand slightly decreased.  During the period production increased slightly.
 
Refinery utilization increased slightly to 86.3% of production capacity.