Weekly Oil Data

Jun 28, 2023

∙ Paid

There has been another surprising decline in inventories, but this time the drop is large. Prices reacted to this development, increasing by more than 2%. Market participants were expecting a modest decline of 1.5 to 1.75 mb.
There has been another release of 1.4 mb from the US Strategic Petroleum Reserve (SPR) as part of the 26 mb congressionally mandated sales for this year. An additional 3.4 mb will be released between now and the end of June.
The EIA reported a major decrease in distillate demand and a healthy increase in jet fuel. This could be related to the upcoming Independence Day holiday.
Although the EIA’s “adjustment” this week is lower than that of last week, it remains large at 8.7 mb for the week. As we stated before, the EIA is unable to solve this problem.

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