Larger Than Expected Inventory Withdrawal Supports the Price Rally

US crude oil stocks posted a decrease of 8.5 MMBbl from last week. Gasoline and distillate inventories decreased 1.8 MMBbl and 0.9 MMBbl, respectively. Yesterday afternoon, API reported a crude oil draw of 6.0 MMBbl alongside gasoline and distillate draws of 3.1 MMBbl and 0.89 MMBbl, respectively. Analysts were expecting a smaller crude draw of 1.8 MMBbl. The most important number to keep an eye on, total petroleum inventories, posted a very large decrease of 10.1 MMBbl. For a summary of the crude oil and petroleum product stock movements, see the table below. US crude oil production increased 900 MBbl/d last week (due to Gulf of Mexico production coming back on-line), per the EIA. Crude oil imports were down 0.37 MMBbl/d last week, to an average of 6.7 MMBbl/d. Refinery inputs averaged 17.0 MMBbl/d (43 MBbl/d less than last week’s average), leading to a utilization rate of 93.0%. The larger than expected crude oil and significant total petroleum stocks withdrawals are supporting the price rally. Prompt-month WTI was trading up $0.46/Bbl, at $58.51/Bbl, at the time of writing. Prices last week traded in the tight range of $56/Bbl-$57/Bbl, being pulled in both directions by lingering tensions in the Middle East… continue reading

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Source: CTRM Center

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