Oil prices came off 26-month highs as some market participants likely have chosen to collect profits of the latest rally. Brent crude settled almost 1% lower yesterday at $58.44/bbl, while WTI slipped by 0.65% to $51.88/bbl.
US crude oil inventories were surprisingly reported down for last week, according to an oil & gas body. The organization assessed crude stockpiles down 761,000 bbl compared to the week prior. A Reuters poll earlier this week found that crude stockpiles likely rose by more than 3.4 million bbl as refinery runs still remain more than 1.4 million bpd below the same time a year ago.
Motor gasoline also surprised, posting an almost 1.5 million bbl build compared to expectations for a 921,000 decline. This suggests a strong rebound in refining activity, in line to the organization’s estimate for refinery utilisation showing a surge of 7.4% to 88.8%. Distillate fuels saw a sharp draw of 4.53 million bbl, more than double the expected 2.16 million bbl.
Thomson Reuters Oil Research has assessed US crude inventories up by 610,724 bbl for last week as supply stood at 16.6 million bpd while demand stood at 16.41 million bpd.
Imports were assessed at 7.1 million bpd as production showed little change, standing at 9.5 million bpd. Refinery input was estimated at 15.8 million bpd and exports stood at 610,000 bpd.
The Oil Research Team
Supply Chain & Commodities Research