US crude inventories fell by just a quarter of expected levels last week despite an end to supply injections from the national reserve, government data showed on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 26th July, 2023) US crude inventories fell by just a quarter of expected levels last week despite an end to supply injections from the national reserve, government data showed on Wednesday.
Fuel inventories also fell less than expected for the week that ended on July 21, the Weekly Petroleum Status Report from the Energy Information Administration (EIA) showed, raising questions about demand in a summer travel period that should logically see large draws.
The US crude inventory balance fell by 0.6 million barrels during the week ended July 21, versus the 2.348 million-barrel decline forecast by industry analysts polled by local media. In the week to July 14, crude stockpiles slid by 0.708 million barrels after a build of 5.946 million the prior week - the most in a month.
The weak crude draw reported by the EIA did not come with what had been the market's caveat for months - release of crude from the US Strategic Petroleum Reserve (SPR).
Prior to this, weekly drawdowns from the SPR had been a point of contention for oil bulls, who said the additional oil had often suppressed crude prices from rallying. The SPR draws stopped two weeks ago and with just days to the end of July, both US crude and Brent oil prices are carrying a 12% gain on the month, on the notion of high oil demand.
The lower than expected crude draw for last week also came on the back of the million-barrel-per-day production cut announced by the Saudis for all of July.
On the gasoline inventory side, the EIA reported a draw of 0.786 million barrels for last week. Analysts had expected the agency to cite a decline of 1.678 million barrels instead, after a drop of 1.066 million the prior week.
Finished motor gasoline products delivered to the marketplace - an indication of demand at the pump - stood at 8.855 million barrels versus the prior week's 8.756 million. Typically, at this time of year, more than 9 million barrels of gasoline or more are supplied to the market each week.
In the case of distillate stockpiles, the EIA reported a build of 0.245 million barrels. Analysts had forecast a decline of 0.301 million barrels last week, against a previous drop of 0.014 million. Distillates are refined into heating oil, diesel for trucks, buses, trains and ships, and fuel for jets.
