Market Report & Analysis for 5/18/2018 Afternoon Edition

by | May 17, 2018 | EMI, Fuels & Markets, FutureRack, Industry News

Afternoon Market Overview

This week’s EIA report was overall bullish based on total combined crude oil and refined product inventories decreasing for the week. Total combined stocks are now 174.4 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 gasoline and distillate fuel stocks Total US crude oil production increased after increasing during the previous week.

Total US production is 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 crude oil inventories decreased as total crude oil exports increased more strongly than imports. Total crude stocks decreased by 1.4 million barrels. With the decrease in crude oil stocks this week the crude oil inventory status versus last year is showing a deficit of 88.4 million barrels while the deficit versus the five-year average for the same week came in around 10.7 million barrels.

Total commercial stocks of crude oil and refined products were lower by 0.7 million bbls after decreasing during the previous week. The year over year deficit came in at 154.2 million barrels while the deficit versus the five- year average for the same week came in at 18.1 million barrels. Total combined stocks of crude and refined products have been decreasing for the last few months and are now 174.4 million bbls off their record high level.

Distillate stocks decreased by 0.1 million bbls versus the market expectations for a larger draw as total US refinery runs increased to 91.1 percent of capacity with exports decreasing strongly on the week. The year over year comparison shows current stock levels at about 31.9 million barrels below last year.

The five-year average deficit came in around 26.2 million barrels. Gasoline inventories decreased by 3.8 million bbls and are still off the record high level hit early in 2017. The deficit versus last year came in around 8.7 million barrels while the surplus versus the five-year average for the same week came in at 4.9 million barrels.