Oil Inventory Report - June 28

[dan_s]

The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 118,000 barrels in the week ended June 23.

Market analysts' expected a crude-stock decline of around 2.5 million barrels, while the American Petroleum Institute late Tuesday reported a supply-gain of 851,000 barrels.

Total U.S. crude oil inventories stood at 509.2 million barrels as of last week, which the EIA considered to be at the upper half of the average range for this time of year.

The report also showed that gasoline inventories decreased by 894,000 barrels, compared to expectations for a drop of 583,000 barrels.

For distillate inventories including diesel, the EIA reported a fall of 223,000 barrels.
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WTI price moved higher immediately after the report. My SWAG is that the spike in price is just some short covering as hedge funds had built a very large short position. Decline in refined products inventories is bullish news and unexpected.

[dan_s]

Exports of refined products surpassed imports of refined products in mid-2011, and have only grown since then. Today, the U.S. is exporting more than double its imports of refined products. Distillate fuels are the country’s primary petroleum product export, with an average of 1200 MBPD exported in 2016. Mexico is the main destination for U.S. distillate exports, but shipments of these products are much more evenly distributed than those of crude oil and gasoline.

Learn more about growing exports here: http://www.oilandgas360.com/u-s-crude-r ... wing-fast/