Crude Withdrawal Supports Prices

US crude oil stocks posted a decrease of 3.1 MMBbl from last week. Gasoline and distillate inventories decreased 1.7 MMBbl and 0.6 MMBbl, respectively. Yesterday afternoon, API reported a crude oil draw of 0.8 MMBbl, alongside a gasoline build of 1.46 MMBbl and a distillate draw of 50 MBbl. Analysts were expecting a larger crude draw of 2.0 MMBbl. The most important number to keep an eye on, total petroleum inventories, posted a decrease of 0.4 MMBbl. For a summary of the crude oil and petroleum product stock movements, see the table below. US crude oil production decreased 100 MBbl/d last week, per the EIA. Crude oil imports were down 0.1 MMBbl/d last week to an average of 7.5 MMBbl/d. Refinery inputs averaged 17.3 MMBbl/d (200 MBbl/d more than last week’s average), leading to a utilization rate of 93.9%. The bullish report due to higher than expected crude withdrawal is supporting prices. Prompt-month WTI was trading up $0.34/Bbl, at $54.24/Bbl, at the time of writing. Lingering trade tensions between the US and China, weaker demand growth, and worries over global economic health have been pressuring prices. Expectations that trade officials from the US and China would settle on an agreement… continue reading

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Source: CTRM Center

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