Afternoon Market Overview

This week’s EIA report was overall bearish based on total combined crude oil and refined product inventories increasing after decreasing during the previous week. Total combined stocks are now 157.3 million bbls below the record high hit at the end of the first week of February of 2017.

The EIA reported a draw in crude oil and in distillate fuel stocks with a small build in gasoline inventories that was less than the market expectations. Total US crude oil production increased slightly after decreasing marginally during the previous week. Total US production is continuing well above the average annual high hit in 1970 and above the average monthly record high hit in October of 1970 of 10.013 million bpd.

Total commercial stocks of crude oil and refined products increased by 3.7 million bbls after decreasing during the previous week. The year over year deficit came in at 146.6 million barrels while the surplus versus the five- year average for the same week came in at 27.4 million barrels. Total combined stocks of crude and refined products have been decreasing for the last few months and are now 157.3 million bbls off their record high level. Total crude oil inventories decreased as total crude oil exports increased while imports decreased strongly.

Total crude stocks decreased by 1.6 million barrels. With the decrease in crude oil stocks this week the crude oil inventory status versus last year is showing a deficit of 98.2 million barrels while the surplus versus the five-year average for the same week came in around 5.7 million barrels.

Distillate stocks decreased by 0.9 million bbls versus the market expectations for a larger draw as total US refinery runs decreased to 87.8 percent of capacity. The year over year comparison shows current stock levels at about 26.2 million barrels below last year. The five-year average deficit came in around 3.1 million barrels. Gasoline inventories increased by 2.5 million bbls and are still off the record high level hit earlier in the year.

The deficit versus last year came in around 4.1 million barrels while the surplus versus the five-year average for the same week came in at 10.1 million barrels.