Morning Market Overview
This week’s EIA report was overall slightly bullish based on total combined crude oil and refined product inventories decreasing for the week. Total combined stocks are now 115.2 million bbls below the record high hit at the end of the first week of February of 2017 but 63.7 million bbls above the low hit in early 2018. The EIA reported across the board draws in inventories.
Total US crude oil production decreased marginally on the week. Total US crude oil production is about 16.7 percent above where it was for the same week a year ago. This week’s production came in at 12.1 million bpd. Total US crude oil stocks increased after decreasing during the previous week as crude oil imports increased while exports decreased. Total commercial stocks of crude oil and refined products were lower by 0.5 million bbls and are 42.1 million barrels above last year while the surplus versus the five-year average for the same week came in at 41.4 million barrels. Total combined stocks of crude and refined products are 115.2 million bbls off their record high level. Total crude oil inventories increased as total crude oil exports decreased while imports increased.
Total crude stocks increased by 7 million barrels. With the increase in crude oil stocks this week the crude oil inventory status versus last year is showing a surplus of 27 million barrels while the surplus versus the five-year average for the same week came in around 13.1 million barrels. Distillate stocks decreased by 2.4 million bbls versus the market expectation for a smaller draw as total US refinery runs increased to 87.5 percent of capacity with exports increasing on the week.
The year over year comparison shows current stock levels at about 1.4 million barrels below last year. The five-year average deficit came in around 5.1 million barrels. Gasoline inventories decreased by 4.2 million bbls and are off the record high level. The deficit versus last year came in around 0.3 million barrels while the surplus versus the five-year average for the same week came in at 7.8 million barrels.