Crude oil price weakened for a third consecutive day. Besides the risk-off mode driven by intensifying US-China trade war, further increase in oil inventory has substantiated near-term bearishness in the oil market. The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks surged +14.64 mmb to 1270.26 mmb in the week ended May 17. Crude oil inventory rose +4.74 mmb to 476.78 mmb (consensus: -0.6 mmb). Inventories rose in PADD 3 and PADD 3. Meanwhile, Cushing stock added +1.27 mmb to 49.07 mmb. Utilization rate dropped -0.6% to 89.9% while crude production added +0.1M bpd to 12.2M bpd for the week. Crude oil imports fell -0.67M bpd to 6.94M bpd in the week.
Concerning refined oil product inventories, gasoline inventory gained +3.72 mmb to 228.74 mmb although demand rose +3.07% to 9.43M bpd. The market had anticipated a -0.82 mmb drop in stockpile. Production added +0.02%% to 10.294 bpd while imports jumped +79.52% to 1.35M bpd during the week. Distillate inventory climbed higher, by +0.77 mmb, to 126.42 mmb. Demand dropped -7.5% to 3.79M bpd. The market had anticipated a -0.05 mmb decline in inventory. Imports soared +148.78% to 0.102M bpd while production slipped -1.1% to 5.21M bpd during the week.
Released after market close on Wednesday, the industry- sponsored API estimated that crude oil inventory gained +2.4 mmb during the week. For refined oil products, gasoline stockpile added +0.35 mmb while distillate dropped -0.24 mmb.