4,727 MBBL draw reported this week
U.S. crude inventories are approaching parity with 2016 levels, according to EIA data released today.
The EIA’s Weekly Petroleum Status Report estimates U.S. commercial crude inventories dropped by 4,727 MBBL last week. This exceeds analysts’ expectations, 3,462 MBBL according to Bloomberg. In total, there are 490,623 MBBL in commercial storage in the U.S. This is just above the 488,830 MBBL that was in storage this week last year, meaning inventories are nearly below record levels.
Gasoline and distillate fuel oil stocks also fell, as the heart of the summer driving season keeps U.S. demand high. Refinery inputs fell slightly to 17,099 MBOPD, from 17,107 MBOPD last week.
U.S. imports fell last week, which may have contributed to the crude stocks drawdown. Imports of crude fell from 7,128 MBOPD to 7,106 MBOPD, while exports of refined products grew by 180 MBOPD. Resurgent U.S. production, combined with falling exports from Saudi Arabia, are bringing down U.S. crude imports.
2016 levels could be reached next week if there is another draw
U.S. crude inventories could dip below 2016 levels next week. If next Wednesday’s Petroleum Status Report shows a draw of at least 123 MBBL, inventories will finally be within the five-year average. Considering the past three reports have shown an average draw of nearly 6,200 MBBL, this is eminently possible, but surprises happen and an unexpected build could be one of them. All eyes are on next week.
