Market Report & Analysis for 6/8/2018 Afternoon Edition
Afternoon Market Overview
This week’s EIA report was overall bearish based on total combined crude oil and refined product inventories decreasing for the week.
Total combined stocks are now 150.1 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 modestly 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. Total US crude oil stocks increased after decreasing during the previous week as refinery run rates increased with crude oil imports increasing strongly along with a decrease in crude oil exports.
Crude oil stocks in Cushing are about 13.1 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 higher by 15.8 million bbls after increasing during the previous week.
The year over year deficit came in at 136.7 million barrels while the deficit versus the five- year average for the same week came in at 5.9 million barrels. Total combined stocks of crude and refined products have been decreasing for the last few months and are still 150.1 million bbls off their record high level. Total crude oil inventories increased as total crude oil exports decreased while imports increased strongly. Total crude stocks increased by 2.1 million barrels. With the increase in crude oil stocks this week the crude oil inventory status versus last year is showing a deficit of 76.6 million barrels while the surplus versus the five-year average for the same week came in around 1.5 million barrels.
Distillate stocks increased by 2.2 million bbls versus the market expectations for a smaller build as total US refinery runs increased to 95.4 percent of capacity with exports increasing strongly on the week. The year over year comparison shows current stock levels at about 34.2 million barrels below last year. The five-year average deficit came in around 24.3 million barrels.
Gasoline inventories increased by 4.6 million bbls and are still off the record high level hit early in 2017. The deficit versus last year came in around 1.3 million barrels while the surplus versus the five-year average for the same week came in at 12.5 million barrels.
