HomeAction InsightOil N' GoldDistillate Inventory Increased For First Time in Two Months

Distillate Inventory Increased For First Time in Two Months

The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products stocks increased +1.76 mmb to 1194.01 mmb in the week ended May 25. Crude oil inventory dropped -3.62 mmb (consensus: -0.53 mmb) to 434.51 mmb, as inventories fell in 4 out of 5 PADDs. Cushing stock slipped -0.56 mmb to 35.54 mmb. Utilization rate added +2.1% to 93.9%. Meanwhile, crude production increased +0.04M bpd to 10.77M bpd for the week.

Refined oil product inventories jumped as production ramped up to the highest since January ahead of Memorial Day weekend. Gasoline inventory added +0.53 mmb to 233.43 mmb with demand largely unchanged at 9.69M bpd. The market had anticipated a -1.37 mmb decline in stockpile. Production rose +3.79% 10.43M bpd while imports fell -9.78% to 0.96M bpd during the week.

Distillate inventory increased for the first time since March 2018, adding +0.63 mmb to 114.63 mmb. The market had anticipated a -1.25 mmb draw. This came in despite the +18.75% jump in demand to 4.32M bpd.  Production gained +7.25% to 5.3M bpd while imports surged +887.5% to 0.24M bpd during the week.

Released after market close on Tuesday, the industry- sponsored API estimated that crude oil inventory gained +1 mmb during the week. For refined oil products, gasoline stockpile fell -1.68 mmb while distillate added +1.47 mmb.

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