Weekly Oil Data

Apr 19, 2023

∙ Paid

Another release of 1.6 mb from the US Strategic Petroleum Reserve (SPR) as part of the 26 mb congressionally mandated sales for this year, will certainly cast its shadow on the oil market. However, the draw in commercial inventories was larger than expected. Despite reducing price losses, it failed to bring it to positive territories.
Although the increase in gasoline inventories was welcome news—as it reversed an 8-week downward trend—inventories remain at critically low levels.
While weekly data is not reliable, US oil demand last week was higher than levels for the same week last year. But year-to-date levels remain lower than those of 2022. If this increase becomes a trend, the sentiment will improve, but gasoline prices could rise way ahead of crude prices due to low inventories.
The adjustment number (the difference between estimates of supply and demand) remains high. This means that despite the EIA’s investigation and recommendations, the problem persists.

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