Prices Fall On Continuously Rising Stockpiles and Fears of Economic and Demand Growth

US crude oil stocks posted an increase of 2.2 MMBbl from last week. Gasoline inventories increased 0.8 MMBbl and distillate inventories decreased 1.0 MMBbl. Yesterday afternoon, API reported a crude oil build of 4.9 MMBbl, alongside a gasoline build of 0.8 MMBbl and a distillate draw of 3.4 MMBbl. Analysts were expecting a smaller crude oil build of 80 MBbl. The most important number to keep an eye on, total petroleum inventories, posted a sizable increase of 9.3 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 0.3 MMBbl/d last week to an average of 7.6 MMBbl/d. Refinery inputs averaged 17.1 MMBbl/d (126 MBbl/d more than last week’s average), leading to a utilization rate of 93.2%. Prices sharply fell this morning due to another rise in crude oil and total petroleum stocks. In addition to continuously rising crude stocks the global economic growth concerns due to US–China trade war is also keeping the pressure on prices. Prompt-month WTI was trading down $1.31/Bbl, at $51.96/Bbl, at the time of writing. Prices last Wednesday dipped to their… continue reading

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Source: CTRM Center

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