Sharp Fall in US Inventory Gives Further Boost to Crude Oil Price

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The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks declined -5.81 mmb to 1282.86 mmb in the week ended June 18. Crude oil inventory slumped -7.61 mmb (consensus: -3.94 mmb) to 459.06 mmb. Stockpile decreased in 4 out of 5 PADDs. PADD 3 (Gulf Coast) saw declines of -5.07 mmb. Cushing stock sank -1.83 mmb to 41.72 mmb. Utilization rate decreased +0.4 percentage points to 92.2% while crude production slipped -0.1M bpd to 11.1M bpd for the week. Crude oil imports increased +0.2M bpd to 6.94M bpd in the week.

Concerning refined oil product inventories, gasoline inventory dropped -2.93 mmb to 240.05 mmb as demand gained +0.85% to 9.44M bpd. The market had anticipated a +0.83 mmb gain in stockpile. Production added +4.04% to 10.33M bpd while imports sank -20% to 0.84M bpd during the week. Distillate stockpile added +1.75 mmb to 137.95 mmb. The market had anticipated a +1.08 mmb increase. Demand slumped -8.97% to 3.95M bpd. Production added +1.11% to 5.11 mmb while imports fell -25.61% to 0.28M bpd during the week.

A day earlier, the industry-sponsored API estimated that crude oil inventory was down -7.2 mmb. Gasoline stockpile gained +0.96 mmb, while that for distillate added +0.99 mmb.

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