Americas Daily Oil Summary: US Stock Builds Could Cut Refinery Runs

US oil refineries have been processing oil at the fastest seasonal rate since the pandemic but rising fuel inventories have begun to weigh on crack spreads, likely signalling a slowdown to come, Reuters said.

• Inventories cannot continue building at current rates without adding downside pressure to margins and prices, Reuters said.
• The Trans Mountain pipeline is running around 80% capacity, as 22 oil tankers are scheduled to load in Vancouver in June with crude from the expanded pipeline, Trans Mountain said cited by Reuters.
• Crude loadings from Guyana are planned at 20m bbl, or 645k b/d in August, according to a loading programme seen by Bloomberg. This compares to 419k b/d in July, which was the lowest level since November amid ongoing seasonal maintenance.
• USD: The greenback has recovered from the post-FOMC reversal as today's softer PPI and higher weekly claims rekindled 50bp in rate cut pricing by year end.
• May's producer price data came in much softer than expected across most categories, with the headline PPI index (final demand) falling 0.25% M/M from +0.52% prior (unrevised), and vs +0.1% consensus.
• The latest weekly jobless claims report was weaker than expected, with initial claims rising 13k in the June 8 week to 242k (vs expectations of a 4k drop to 225k). Continuing claims rose much more than expected as well in the June 1 week, to 1,820k.