Weekly Oil Data
Inventories, Exports, Imports, and Refinery Utilization
MAIN TAKEAWAY
The general conviction now is that the decline in crude oil inventories is the start of a downward trend. The drop in gasoline and distillate inventories deserves attention because gasoline inventories specifically are at their lowest levels since spring 2014 when Brent was around $110/b and WTI was slightly above $100/b. The increase in refinery utilization as the maintenance season comes to an end is a welcomed development but may not be enough to build enough gasoline inventories for the driving season. Only a recession can revert these trends.