EIA: Oil Storage Report - June 13

[dan_s]

EIA reported a draw of 4,143,000 bbls of crude oil from U.S. commercial storage for the week ending 6/8, triple the draw that was forecast by the "experts". Gasoline inventories also declined.

Comments below are from Raymond James:
This week's petroleum inventories update was bullish relative to consensus. ''Big Three'' inventories (crude, gasoline, distillates) fell by 8.5 MMBbls, versus consensus estimates for a build of 0.3 MMBbls. Crude inventories fell by 4.1 MMBbls, versus consensus calling for a draw of 1.2 MMBbls. Cushing crude inventories declined by 0.7 MMBbls, with Gulf Coast inventories down 1.0 MMBbls. Gasoline posted a healthy draw of 2.3 MMBbls versus consensus calling for a build of 1.0 MMBbls; and distillate inventories posted a draw of 2.1 MMBbls versus consensus calling for a build of 0.5 MMBbls. Worth noting, distillate inventories are now at the lowest level for a June reading since 2008. Total petroleum inventories were down 1.8 MMBbls.

As always, regardless of their week-to-week movements, U.S. inventories do not constitute a holistic picture of global (or even total OECD) inventories, but they represent the only ''real-time'' data source.

Refinery utilization edged up again to 95.7% from 95.4% last week, as refiners ramp to near-peak summer utilization levels. Total petroleum imports were 10.7 MMBbls per day, up from last week's 10.2 MMBbls per day. Total petroleum product demand increased 18.1% after last week's 11.6% decrease, showing the extreme volatility in ''measuring'' product demand. On a four-week moving average basis, there is a 1.7% y/y increase in total demand. U.S. (Lower 48) production was ~10.4 MMBbls per day, compared to ~10.3 MMBbls per day last week (of note, the EIA started rounding to the nearest 100,000 Bbls per day last week). As always, weekly demand and supply figures are provisional estimates subject to frequent revisions.
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My Take: If refinery utilization stays over 95%, crude inventory draws should continue. Just remember that EIA's weekly report is just their best guess.

[dan_s]

Read this: https://finance.yahoo.com/news/3-oil-ma ... 00460.html