CRUDE OIL US crude oil inventories posted an increase of 2.4 MMBbl last week, according to the weekly EIA report. Gasoline inventories increased 4.4 MMBbl, while distillate inventories increased 1.5 MMBbl. With all these increases, total petroleum inventories posted a large build of 10.4 MMBbl. US crude oil production increased 100 MBbl/d, while crude oil imports were up 0.49 MMBbl/d to an average of 7.1 MMBbl/d. Prices were down all week as the market continued to struggle with the tariff and trade issues between the US and China. The prior week, the Trump administration’s announcement of an additional 10% tariff on $300 billion of Chinese goods, effective September 1, added more skepticism of any agreement between the world’s largest economies. WTI then had to absorb the trade news of China devaluing its currency (the yuan) to nearly a 10-year low. Adding to the WTI trade woes was the China announcement to state-run companies to halt the imports of US agricultural products. In response to these events, the US promptly branded China a currency manipulator. If that bearish news weren’t enough, the inventory release on Wednesday added fuel to the collapse. The large gains in total petroleum inventories forced selling that… continue reading
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Source: CTRM Center