Americas Daily Oil Summary: US Crude Stocks Build

Crude showed a build in line with API data yesterday but counter to market expectations despite a rise in exports and increase in refinery runs while production once again remined unchanged.

• EIA Weekly US Petroleum Summary - w/w change week ending May 17: Crude stocks +1,825 vs Exp -1,922, Crude production 0, SPR stocks +993, Cushing stocks +1,325
• US weekly imports of crude oil from Mexico fell to 184k b/d in the previous week, the lowest level on record, according to the EIA May 22.
• BP's 435,000 bpd Whiting, Indiana, refinery experienced a flaring event on Sunday and another on Monday according to Reuters sources.
• U.S. oil refinery capacity is seen rising 408,000 bpd for the week ended May 24 w/w according to IRR.
• Mexico is importing more Asian gasoline to help to meet the 60% of its demand not covered by domestic production, Argus said.
• VLCC rates on the USGC hit a four-month high on May 17 amid elevated APAC demand for US crude, particularly from China, Argus said.
• Greenback: USD Index up 0.18% at 1249.88
• Fed officials believe the fight against inflation is going to take longer than previously thought based on a resurgence of price pressure at the start of the year, minutes from the Fed’s May meeting showed May 22.
• Venezuelan opposition primary winner Maria Corina Machado, banned from holding office, is campaigning on behalf of her replacement Edmundo Gonzalez.