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US Crude Oil Inventory Unexpectedly Increased

Crude oil prices fell as US inventory surprisingly increased last week. The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products stocks gained +3.3 mmb to 1206.9 mmb in the week ended June 29. Crude oil inventory added +1.25 mmb (consensus: -3.54 mmb) to 417.88 mmb, although inventories decreased in 4 out of 5 PADDs. Meanwhile, PADD III saw inventory gain of +2.95 mmb. Cushing stock slipped -2.11 mmb to 27.78 mmb. Utilization rate slipped -0.4% to 97.1%. Meanwhile, crude production steadied at 10.9M bpd for the week.

Concerning refined oil product inventories. Gasoline inventory declined -1.51 mmb to 239.69 mmb although demand gained +1.42% to 9.87M bpd. The market had anticipated a -0.82 mmb decrease in stockpile. Production added +1.67% to 10.31M bpd while imports plunged -34.41% to 0.65M bpd during the week.

Distillate inventory increased +0.13 mmb to 117.56 mmb. The market had anticipated a -0.55 mmb drop. This came as a result of a +14.23% rose in demand to 4.13M bpd.  Production added +1.24% to 5.46M bpd while imports soared +70.37% to 0.09M bpd during the week.

Released after market close on Wednesday, the industry- sponsored API estimated that crude oil inventory fell -4.5 mmb during the week. For refined oil products, gasoline stockpile dropped -3.1  mmb while distillate was down -0.4 mmb.

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