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The Fuels Markets closed higher Monday largely on supply concerns. However, intriguing demand news was found in the travel sector. The TSA reported the US moved over 2MM air passengers for the first time since March 2020 on Friday. This was despite American Airlines cancelling hundreds of flights because of staffing shortages. While reservation agents can be added quickly, adding pilots cannot. AAA continues to warn about rental car shortages because of a lack of computer chips for new cars. Fuel supply inventories are concerning. However, the Bulls’ fuel demand optimism may need to be throttled by the reality of outside forces.

Wednesday turned into an interesting day in the Fuels Market. In the AM, the EIA released their inventory levels. Crude inventories dropped significantly more than most forecasts. Distillate inventories fell to a lesser extent, but Gasoline stocks continue to rise on increased production. The net of these numbers should have been Bullish. However, the EIA measures what has happened. The markets are often more concerned about what lies ahead than what lies behind. At 2pm, the Federal Reserve released its announcement. There is no immediate change in Fed Rates. However, the tea leaves suggest rates will rise sooner than previously expected.