WTI/RBOB are holding gains, helped by a weaker dollar, after last night’s API draws, and extended gains after DOE reported across the board inventory draws and no increase in US production.
Bloomberg Intelligence Senior Energy Analyst Vince Piazza noted that bearish concerns are brewing in a U.S. crude market awash with domestic supply and braced for the reintroduction of OPEC oil. Exports had been a safety valve, but they declined to less than 1.5 million barrels a day in the week ended July 13 from more than 2 million the previous period. Still, analysts expect a 3 million-barrel draw for the week through July 20. Piazza also notes that U.S. refiners will start to cull runs and enter maintenance after early-summer oversupply narrowed U.S. crack spreads.
API
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Crude -3.16mm (-3.1mm exp)
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Cushing -808k (-900k exp)
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Gasoline -4.87mm
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Distillates -1.32mm
DOE
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Crude -6.15mm (-3mm exp, whisper -1mm)
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Cushing -1.127mm (-900k exp)
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Gasoline -2.328mm
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Distillates -101k
After last week’s surprise build in crude inventories, this week saw that reversed and some with a 6.15mm draw…
Notably, crude inventories in the European storage hub at Amsterdam, Rotterdam and Antwerp rose by 3.3 million barrels last week, according to Genscape data.
Despite huge discounts still in the Permian, last week saw a surge in production to a record 11mm b/d, but this week it remained flat…
US Imports from Ecuador spiked curiously last week but tumbled back to low norms this week.
WTI/RBOB prices were holding up ahead of the DOE data, and despite a small algo flurry at the print, prices are extending gains…
“Tightening oil supplies in the U.S. have spurred buying pressures, though these should not be taken for granted in this era of uncertainty,” Stephen Brennock, an analyst at PVM Oil Associates Ltd., wrote in a report.
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