Crude oil prices fell as US inventory slumped last week. The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products stocks dropped -7.17 mmb to 1199.73 mmb in the week ended July 6. Crude oil inventory plunged -12.63 mmb (consensus: -4.49 mmb) to 405.25 mmb, marking the biggest decline since 2016. Inventories decreased in ALL PADDs and PADD III alone saw inventory decline of -7.24 mmb. Cushing stock slipped -2.06 mmb to 25.72 mmb. Utilization rate slipped -0.4% to 96.7%. Meanwhile, crude production steadied at 10.9M bpd for the week.
Concerning refined oil product inventories. Gasoline inventory dropped -0.69 mmb to 239 mmb although demand slipped -6.02% to 9.28M bpd. The market had anticipated a -0.75 mmb decrease in stockpile. Production added +3.76% to 10.7M bpd while imports jumped +31.64% to 0.85M bpd during the week.
Distillate inventory increased +4.13 mmb to 121.68 mmb. as a result of a -7.78% drop in demand to 3.81M bpd. The market had anticipated a +1.2 mmb gain in inventory. Production dipped -0.38% to 5.44M bpd while imports soared +13.04% to 0.1M bpd during the week.
Released after market close on Wednesday, the industry- sponsored API estimated that crude oil inventory fell -6.8 mmb during the week. For refined oil products, gasoline stockpile dropped -1.59 mmb while distillate was up +1.95 mmb.