The Increase in Prices Continued Following The EIA’s Bullish Inventory Report

US crude oil stocks posted a very large decrease of 10.0 MMBbl from last week. Gasoline and distillate inventories both decreased by 2.1 MMBbl. Yesterday afternoon, API reported a very large crude oil draw of 11.1 MMBbl, while reporting gasoline and distillate draws of 0.35 MMBbl and 2.5 MMBbl, respectively. Analysts were expecting a much smaller crude oil draw of 2.1 MMBbl. The most important number to keep an eye on, total petroleum inventories, posted a significantly large decrease of 11.2 MMBbl. For a summary of the crude oil and petroleum product stock movements, see the table below. US crude oil production increased 200 MBbl/d last week, per the EIA. Crude oil imports were down 1.3 MMBbl/d last week, to an average of 5.9 MMBbl/d. Refinery inputs averaged 17.4 MMBbl/d (0.3 MMBbl/d less than last week’s average), leading to a utilization rate of 95.2%. The report is bullish due to significantly large crude oil and total petroleum stocks withdrawals. The increase in prices yesterday due to API’s report continued today, following the bullish EIA report. Prompt-month WTI was trading up $1.06/Bbl, at $55.99/Bbl, at the time of writing. Prices saw a sharp increase on Tuesday due to a significantly large… continue reading

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Source: CTRM Center

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