Inventory Build Pressure Prices Further

US crude oil stocks increased by 2.4 MMBbl. Gasoline inventories increased 0.5 MMBbl and distillate inventories decreased 3.0 MMBbl. Yesterday afternoon, API reported a crude oil build of 1.4 MMBbl, alongside a gasoline build of 1.9 MMBbl and a distillate draw of 2.2 MMBbl. Analysts, to the contrary, were expecting a crude oil draw of 0.8 MMBbl. Total petroleum inventories posted an increase of 0.7 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’s estimates. Crude oil imports were down 0.7 MMBbl/d last week, to an average of 6.4 MMBbl/d. Refinery inputs averaged 16.5 MMBbl/d (0.2 MMBbl/d less than last week’s average), leading to a utilization rate of 89.8%. Prices continued their decline following the crude oil and total petroleum stocks build. Prompt-month WTI was trading down $1.22/Bbl, at $56.07/Bbl, at the time of writing. Futures dipped to their lowest point since the attack on Saudi Arabian crude facilities on September 14. As before the attack, the escalating US-China tra11de war, worries about a global economic slowdown, and faltering energy demand weighed on market sentiment. US President Donald Trump helped… continue reading

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Source: CTRM Center

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