CRUDE OIL US crude oil inventories posted an increase of 6.8 MMBbl last week, according to the weekly EIA report. Gasoline and distillate inventories increased 3.2 MMBbl and 4.6 MMBbl, respectively. Total petroleum inventories showed a substantial increase of 22.4 MMBbl. US crude oil production increased 100 MBbl/d last week per EIA. Crude oil imports were up 1.07 MMBbl/d to an average of 7.3 MMBbl/d versus the week prior. As expected, price declines were extended in early trade last week. Trade tensions between the US and China have subdued global economic growth and brought a distinctly bearish bias to trade. Manufacturing activity from China was disappointing, shrinking more than expected and confirming the market’s concerns about global economic activity. The market then had to assess potential tariffs on Mexican goods entering the US, but this measure was rejected upon President Trump’s return to the US on Friday. News of the possibility of OPEC extending the supply cuts to the second half of the year and the ongoing tensions in the Middle East seemingly brought some modesty to the declines. Saudi Arabian energy minister Khalid al-Falih stated that a consensus was emerging among producers to continue working to “sustain market stability.”… continue reading
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Source: CTRM Center