Tue, Dec 01, 2020 @ 01:42 GMT
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WTI Crude Oil Price Plunged after US Inventory Increased Much more than Expected

The front-month WTI crude oil contract slumped to the lower in 4 weeks as increase in US inventory almost quadrupled expectations. The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks plunged -16.8 mmb to 1402.34 mmb in the week ended October 23. Crude oil inventory soared +4.32 mmb (consensus: +1.23 mmb) to 492.43 mmb. Stockpile increased in 2 out of 5 PADDs. However, PADD3 (Gulf Coast) inventory alone soared +5.29 mmb during the week. Cushing stock slipped -0.42 mmb to 60 mmb. Utilization rate added +1.7 percentage points to 74.6% while crude production gained +1.2M bpd to 11.1M bpd for the week. Crude oil imports increased +0.55 bpd to 5.66M bpd in the week.

week.

Concerning refined oil product inventories, gasoline inventory slipped -0.89 mmb to 226.12 mmb as demand rose +3.1% to 8.29M bpd. The market had anticipated a -0.96 mmb decrease in stockpile. Production added +1.8% to 9.1M bpd while imports jumped dropped -9.6% to 0.46M bpd during the week. Distillate dived -4.46 mmb to 156.23 mmb. The market had anticipated a -2.07 mmb decrease. Demand rpse +18.2% to 4.24M bpd. Production dipped -0.1% to 4.12 mmb while imports soared +126.3% to 0.34M bpd during the week.

A day earlier, the industry-sponsored API estimated that crude oil inventory jumped +4.58 mmb during the week. For refined oil products, gasoline inventory added +2.25 mmb while that for distillate slumped -5.33 mmb.

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