Prices are Extending Their Gains Due to Bullish Inventory Report

US crude oil stocks posted a very large decrease of 10.8 MMBbl from last week. Gasoline inventories decreased 0.2 MMBbl and distillate inventories increased 0.6 MMBbl. Yesterday afternoon, API reported a very large crude oil draw of 10.9 MMBbl alongside gasoline and distillate builds of 4.4 MMBbl and 1.4 MMBbl, respectively. Analysts were expecting a smaller crude oil draw of 4.0 MMBbl. The most important number to keep an eye on, total petroleum inventories, posted a decrease of 6.7 MMBbl. For a summary of the crude oil and petroleum product stock movements, see the table below. US crude oil production decreased 700 MBbl/d last week (due to Gulf of Mexico shut-ins), per the EIA. Crude oil imports were up 0.2 MMBbl/d last week, to an average of 7.0 MMBbl/d. Refinery inputs averaged 17.0 MMBbl/d (0.23 MMBbl/d less than last week’s average), leading to a utilization rate of 93.1%. Prices are extending their gains due to significantly large crude oil and total petroleum stocks withdrawals. Prompt-month WTI was trading up $0.61/Bbl, at $57.38/Bbl, at the time of writing. After dipping to their lowest in a month, prices have recovered some of their losses since last Thursday by getting some support from… continue reading

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Source: CTRM Center

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