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Home Action Insight Oil N' Gold US Crude Oil Inventory Dropped Less than Anticipated. Price Steadies as Market...

US Crude Oil Inventory Dropped Less than Anticipated. Price Steadies as Market Awaits OPEC Decicions

The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks added +0.12 mmb to 1353.96 mmb in the week ended November 27. Crude oil inventory slipped -0.68 mmb (consensus: -2.36 mmb) to 488.04 mmb. Stockpile decreased in 3 out of 5 PADDs. Cushing stock dropped -0.32 mmb to 59.58 mmb. Utilization rate decreased -0.5 percentage point to 78.2% while crude production added +0.1M bpd steadied at 11.1M bpd for the week. Crude oil imports climbed higher, by +0.17M bpd to 5.4M bpd in the week. The focus today is OPEC+’s meeting to decide on the output cut agreement. It is the market consensus that the alliance would agree to extend the output cut quota of 7.7M bpd until March 2021.

Concerning refined oil product inventories, gasoline inventory rose +3.49 mmb to 233.64 mmb as demand slipped -1.92% to 7.97M bpd. The market had anticipated a +2.39 mmb increase in stockpile. Production dropped -3.01% to 8.58M bpd while imports gained +18.37% to 0.52M bpd during the week. Distillate gained +3.24 mmb to 145.87 mmb. The market had anticipated a -0.21 mmb decrease. Demand declined -9.25% to 3.79M bpd. Production slipped -0.46% to 4.59 mmb while imports jumped +230.11% to 0.61M bpd during the week.

A day earlier, the industry-sponsored API estimated that crude oil inventory gained +3.4 mmb while that for distillate was up +0.33 mmb.

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