Oil Prices Jump on Very Large Crude Draw

US crude oil stocks posted a very large decrease of 9.5 MMBbl from last week. Gasoline inventories decreased 1.5 MMBbl, and distillate inventories increased 3.7 MMBbl. Yesterday afternoon, API reported a large crude oil draw of 8.1 MMBbl alongside a gasoline draw of 0.26 MMBbl and a distillate build of 3.7 MMBbl. Analysts were expecting a smaller crude draw of 3.1 MMBbl. The most important number to keep an eye on, total petroleum inventories, posted a decrease of 3.8 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 down 0.3 MMBbl/d last week, to an average of 7.3 MMBbl/d. Refinery inputs averaged 17.4 MMBbl/d (0.1 MMBbl/d more than last week’s average), leading to a utilization rate of 94.7%. The report is bullish and supporting prices due to large and higher than expected crude oil and total petroleum stocks withdrawals. Prompt-month WTI was trading up $1.53/Bbl, at $59.36/Bbl, at the time of writing. Prices recovered some of their losses from Friday and have been trading in the narrow $57-$58/Bbl range as intensifying geopolitical tensions and OPEC+ production… continue reading

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Source: CTRM Center

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