Morning Market Overview
Oil prices were hit with a variety of mixed signals Wednesday. OPEC released their monthly oil forecast indicating that global oil demand growth was likely to slow as the global economy may also ease. On the weekly EIA oil inventory snapshot also a mixed picture but overall bearish. The EIA reported a large draw in crude oil stocks offset entirely by large builds in refined products.
Total combined stocks of crude oil and refined products increased strongly rendering the overall EIA report to have a bearish bias. Total commercial stocks of crude oil and refined products were higher by 10.1 million bbls and 73.7 million barrels below last year while the surplus versus the five-year average for the same week came in at 10.7 million barrels. Total combined stocks of crude and refined products have been decreasing for the last few months and are 123.2 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 5.3 million barrels. With the decrease in crude oil stocks this week the crude oil inventory status versus last year is showing a deficit of 66.2 million barrels while the deficit versus the five-year average for the same week came in around 9.3 million barrels.
Distillate stocks increased 6.2 million bbls versus the market expectation for a smaller build as total US refinery runs increased to 97.6 percent of capacity with exports increasing on the week. The year over year comparison shows current stock levels at about 8.5 million barrels below last year. The five-year average deficit came in around 1.8 million barrels.
Gasoline inventories increased by 1.3 million bbls and are still off the record high level hit early in 2017. The surplus versus last year came in around 9.2 million barrels while the surplus versus the five-year average for the same week came in at 16.2 million barrels.