Market Report & Analysis for 6/15/2018 Morning Edition

by | Jun 14, 2018 | EMI, Fuels & Markets, FutureRack, Industry News

Morning Market Overview

Oil prices received a boost from a surprise across the board draw in US oil inventories The EIA report this week was overall bullish based on total combined crude oil and refined product inventories decreasing for the week.

Total combined stocks are now 151.9 million bbls below the record high hit at the end of the first week of February of 2017. The EIA reported across the board builds. Total US crude oil production increased strongly after increasing during the previous week. Total US production remains 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.

Crude oil stocks in Cushing are about 12.8 million barrels above the pre-surplus five-year inventory average (2004-2008) for the same week. Cushing stocks decreased during the previous week. Total commercial stocks of crude oil and refined products were lower by 0.8 million bbls after increasing during the previous week.

The year over year deficit came in at 144.3 million barrels while the deficit versus the five- year average for the same week came in at 11.1 million barrels. Total combined stocks of crude and refined products have been decreasing for the last few months and are still 151.9 million bbls off their record high level. Total crude oil inventories decreased as total crude oil exports increased while imports decreased. Total crude stocks decreased by 4.2 million barrels. With the decrease in crude oil stocks this week the crude oil inventory status versus last year is showing a deficit of 79.1 million barrels while the deficit versus the five-year average for the same week came in around 1.3 million barrels.

Distillate stocks decreased by 2.1 million bbls versus the market expectations for a small build as total US refinery runs increased to 95.7 percent of capacity with exports decreasing strongly on the week. The year over year comparison shows current stock levels at about 36.7 million barrels below last year. The five-year average deficit came in around 26.4 million barrels.

Gasoline inventories decreased by 2.1 million bbls and are still off the record high level hit early in 2017. The deficit versus last year came in around 5.6 million barrels while the surplus versus the five-year average for the same week came in at 10.1 million barrels.