Market Report & Analysis for 6/28/2018 Afternoon Edition

Afternoon Market Overview

The API started the weekly inventory report cycle with a mixed report with a larger than expected draw in crude oil and a smaller than expected build in gasoline stocks with a larger than expected build in distillate fuel stocks.

Total combined inventories of crude oil and products were lower on the week. The API reported US crude oil stocks decreased by 9.2 million barrels on the week. Cushing crude oil stocks decreased by 1.7 million barrels. They also reported a 1.8 million bbl build in distillate fuel inventories and a 1.2 million bbl build in gasoline stocks. Total combined inventories of crude oil and refined products were lower for the week and outside the range of market expectations. Canadian imports into the US for the week ending June 15 decreased by 140,000 bpd to 3.571mn bpd and are now 154,000 bpd below the previous all-time record- high reached several weeks ago, per the U.S. Energy Information Agency.

Canadian imports likely will show another decrease this week as there is an unplanned outage still evolving in Canadian Syncrude production.