Prices Fell Sharply Due to Bearish Inventory Report and Concerns on Global Economic Growth

US crude oil stocks posted a decrease of 8.5 MMBbl from last week. Gasoline and distillate inventories increased by 4.4 MMBbl and 1.5 MMBbl, respectively. Yesterday afternoon, API reported a crude oil draw of 3.4 MMBbl, while reporting a gasoline draw of 1.1 MMBbl and a distillate build of 1.2 MMBbl. Analysts were expecting a crude draw of 2.8 MMBbl. The most important number to keep an eye on, total petroleum inventories, posted a very large increase of 10.4 MMBbl. For a summary of the crude oil and petroleum product stock movements, see the table below. US crude oil production increased by 100 MBbl/d last week, per the EIA. Crude oil imports were up 0.49 MMBbl/d last week, to an average of 7.1 MMBbl/d. Refinery inputs averaged 17.8 MMBbl/d (0.79 MMBbl/d more than last week’s average), leading to a utilization rate of 96.4%. Prices sharply fell due to larger-than-expected crude oil and significant total petroleum stocks. Prompt-month WTI was trading down $2.82/Bbl, at $50.81/Bbl, at the time of writing. Oil prices crashed 8% last Thursday, the largest daily drop since February 2015, in reaction to the US President Donald Trump’s announcement that the US would impose 10% tariffs on $300… continue reading

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Source: CTRM Center

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