Market Update: Gasoline Glut Building

Welcome to Energy Markets Daily. Thursday, February 5, 2026 — Market Update. CRUDE OIL UPDATE: WTI pulled back to $63.20, consolidating after Monday's 5% crash. The bounce stalled exactly where we said it would. $63-64 resistance holding. EIA Weekly Petroleum Status Report dropped. Crude inventories down 3.5 million barrels to 420.3 million. 4% below the 5-year average. Sounds bullish? Wrong. Here's what matters: Gasoline inventories jumped 700,000 barrels to 257.9 million. Highest level since June 2020. Demand destruction. Distillates down 5.5 million barrels to 127.4 million. Refinery utilization dropped to 90.5%. OPEC+ holding the line through March. They're trapped. EIA projects WTI averaging $52 for 2026. We're at $63. That's a 17% premium to fair value. Sell the rips. NATURAL GAS UPDATE: Henry Hub at $3.46, down slightly. Storage draw for week ending Jan 30 expected around 379 Bcf. Massive. LNG flows to major terminals averaging 18.3 bcfd in February, approaching December's record 18.5 bcfd. Golden Pass LNG expected online mid-2026. EIA holds $3.50 avg for 2026, $4.60 for 2027. THE SETUP: Crude inventories falling but gasoline glut building. Demand weak. Gas supported by LNG ramp and storage draws. The decoupling continues. Trade the data. Not the headlines. For energy opportunities: [email protected]