US crude oil stocks posted a large decrease of 12.8 MMBbl from last week. Gasoline and distillate inventories decreased 1.0 MMBbl and 2.4 MMBbl, respectively. Yesterday afternoon, API reported a large crude oil draw of 7.5 MMBbl, alongside a gasoline draw of 3.2 MMBbl and a distillate build of 0.16 MMBbl. Analysts were expecting a much smaller crude draw of 2.8 MMBbl. The most important number to keep an eye on, total petroleum inventories, posted a significant decrease of 11.9 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 0.8 MMBbl/d last week, to an average of 6.7 MMBbl/d. Refinery inputs averaged 17.3 MMBbl/d (70 MBbl/d more than last week’s average), leading to a utilization rate of 94.2%. The report is very bullish due to large petroleum stocks withdrawal and higher-than-expected crude oil withdrawal. Prompt-month WTI was trading up $1.83/Bbl, at $59.66/Bbl, at the time of writing. Prices soared nearly 6% last Thursday, finishing the week up more than 9%, due to increasing tensions between the US and Iran and possible crude flow disruptions from… continue reading
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Source: CTRM Center