Afternoon Market Overview

The API started the weekly inventory report cycle with a mixed inventory snapshot. Crude oil and distillate inventories declined more than expected with gasoline stocks within the market expectations for a modest build.

The total combined inventories of crude oil and products were modestly lower on the week. Overall the market added to its intraday crude oil gains after the report was issued. The API reported US crude oil stocks decreased by 5.2 million barrels on the week. Cushing crude oil stocks decreased by 70,000 barrels. They also reported a 2.9 million bbl draw in distillate fuel inventories and a 2 million bbl build in gasoline stocks.

Refinery utilization rates increased by 0.3 percent. Total combined inventories of crude oil and refined products were modestly lower for the week and outside the range of market expectations.

Canadian imports into the US for the week ending December 8 increased by 432,000 bpd to 3.302mn bpd and are now 333,000 bpd below the previous all- time record-high reached earlier in the year, per the U.S. Energy Information Agency.