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EIA Oil Inventory Preview: Data Delayed

OIL

EIA Oil Inventory Preview: The EIA weekly petroleum status report was expected to be released at 11:00 EDT (16:00 BST) today. The release has been delayed due to systems issues. Delayed data will be released as soon as possible.

  • Crude inventories are expected to draw by -1.02mbbls for the week to 17th June. Last week saw the first increase in production since early April. The increase was likely driven by higher US shale production forecasts for both June and July. The data also showed the biggest ever draw from strategic reserves of 7.7mbbls as the US continues its 1mbbls per day release, expected to continue until October.
  • The WTI-Brent spread has continued to fall as concerns for the US economy have pushed WTI prices down faster than Brent resulting in a spread as low as -5.81$/bbl. With the average spread last week of 4.6$/bbl, the overseas demand is likely to maintain high crude exports. API data last night showed a further draw of -0.39mbbls at Cushing and with stocks so low, further EIA draws could help to limit the fall in the WTI-Brent spread.
  • Last week’s data showed US distillate stocks are 22.5% below the 5-year average and gasoline 10.7% below. These low stock levels are helping maintain the bullish sentiment in crack spreads with the 321 crack spread up to 58.2$/bbl. Gasoline is expected to draw by -0.38mbbls and distillates by -0.06mbbls.
  • Refined product demand - including gasoline - edged lower last week, in what could be a sign that high prices are starting to have an impact on demand. The four-week rolling average has been trailing further from the increasing seasonal normal in recent weeks.
  • Refinery utilization fell slightly last week but remains high at 93.7%. An outage on the west coast contributed to the fall last week and planned maintenance at Chevron’s Richmond refinery could send west coast refinery utilization even lower.
  • The API data released last night showed a build in crude of +5.6mbbls, a build in gasoline of +1.2mbbl and draw in distillates -1.66mbbl.
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EIA Oil Inventory Preview: The EIA weekly petroleum status report was expected to be released at 11:00 EDT (16:00 BST) today. The release has been delayed due to systems issues. Delayed data will be released as soon as possible.

  • Crude inventories are expected to draw by -1.02mbbls for the week to 17th June. Last week saw the first increase in production since early April. The increase was likely driven by higher US shale production forecasts for both June and July. The data also showed the biggest ever draw from strategic reserves of 7.7mbbls as the US continues its 1mbbls per day release, expected to continue until October.
  • The WTI-Brent spread has continued to fall as concerns for the US economy have pushed WTI prices down faster than Brent resulting in a spread as low as -5.81$/bbl. With the average spread last week of 4.6$/bbl, the overseas demand is likely to maintain high crude exports. API data last night showed a further draw of -0.39mbbls at Cushing and with stocks so low, further EIA draws could help to limit the fall in the WTI-Brent spread.
  • Last week’s data showed US distillate stocks are 22.5% below the 5-year average and gasoline 10.7% below. These low stock levels are helping maintain the bullish sentiment in crack spreads with the 321 crack spread up to 58.2$/bbl. Gasoline is expected to draw by -0.38mbbls and distillates by -0.06mbbls.
  • Refined product demand - including gasoline - edged lower last week, in what could be a sign that high prices are starting to have an impact on demand. The four-week rolling average has been trailing further from the increasing seasonal normal in recent weeks.
  • Refinery utilization fell slightly last week but remains high at 93.7%. An outage on the west coast contributed to the fall last week and planned maintenance at Chevron’s Richmond refinery could send west coast refinery utilization even lower.
  • The API data released last night showed a build in crude of +5.6mbbls, a build in gasoline of +1.2mbbl and draw in distillates -1.66mbbl.