Less Than Anticipated Crude Withdrawal and Demand Concerns Keeps Prices Flat Despite OPEC Cuts

US crude oil stocks posted a decrease of 1.1 MMBbl from last week. Gasoline inventories decreased 1.6 MMBbl and distillate inventories increased 1.4 MMBbl. Yesterday afternoon, API reported a crude oil draw of 5.0 MMBbl alongside gasoline and distillate draws of 0.4 MMBbl and 1.7 MMBbl, respectively. Analysts were expecting a smaller crude draw of 2.5 MMBbl. The most important number to keep an eye on, total petroleum inventories, posted an increase of 2.5 MMBbl. For a summary of the crude oil and petroleum product stock movements, see the table below. US crude oil production increased 100 MBbl/d last week, per the EIA. Crude oil imports were up 0.9 MMBbl/d last week, to an average of 7.6 MMBbl/d. Refinery inputs averaged 17.3 MMBbl/d (47 MBbl/d less than last week’s average), leading to a utilization rate of 94.2%. Prices are mixed this morning due to less than anticipated crude oil withdrawal and total petroleum stocks build. Prompt-month WTI was trading up $0.08/Bbl, at $56.33/Bbl, at the time of writing. The outcomes from the OPEC and G20 meetings provided some support to prices on Monday; however, they were short-lived, as demand worries took control over the sentiment once again. The agreement between… continue reading

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