Oil prices continued to post losses Thursday morning, with week-to-date aggregate declines rising to 5% for Brent and 6.2% for WTI. The confirmed build on US crude oil stocks and the sharp increase of crude output weighed heavily on benchmarks. The recovering US Dollar has also contributed in the decline of oil prices as the index of the greenback versus a basket of major currencies has managed to creep up to 90.44, from a low of 88.67 last week.
US crude oil production soared to 10.25 million bpd last week, rising by more than 330,000, highest weekly increase since October 2017. Production has risen by more than 1.27 million bpd compared to a year ago.
Crude stockpiles increased by 1.9 million bbls last week, albeit the comparison of aggregate supply of crude versus the total implied demand suggests volumes going in storage may have been lower. Supplies stood at 18.15 million bpd, as imports pulled back to 7.9 million bpd. Implied demand increased to 18.1 million bpd, as refinery throughput rose by 784,000 bpd, to 16.8 million bpd, while exports were seen at 1.3 million bpd. Thomson Reuters Oil Research had pinned expectations for crude stocks at a 1.02 million bbls build.
Gasoline and distillate stockpiles also rose last week, an outcome of rebounding refinery throughput. Motor gasoline inventories increased by 3.41 million bbls, while distillates increased by 3.93 million bbls.
The Oil Research Team, EMEA
Supply Chain & Commodities Research