US Weekly Oil Data

US Inventories, Exports, Imports, and Refinery Utilization (12 Charts).

EOA’s Main Takeaway

While the data looks bullish since it gives the impression of increasing demand, a deeper look negates that impression. For example, exports of gasoline, naphtha and middle distillates have been declining and are near the bottom of the of the 5-year range. But US imports of the same products declined by almost the same amounts! The number of passengers flying through US airports is at record high, but jet fuel demand remains below pre-covid levels.

Although the decrease in crude inventories was minuscule, it was contrary to historical trends and, most importantly, expectations. The market expected a build, but we got a draw.  Oil prices increased by 3% on the news. 

The recent decline in gasoline inventories fits with historical trends, but the magnitude of the decline is larger (steeper decline) even than expectations. The decline in distillate inventories matches historical trends.    

 

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