OIL: EIA Oil Stocks Preview: Furhter Crude Draw Expected

EIA Oil Inventory Preview: The EIA weekly petroleum status report will be released at 10:30ET (15:30BST) today.

• Crude inventories are expected to draw by 0.83mbbls, US gasoline to draw by 1.18mbbl and distillates to draw 0.58mbbl for the week ending July 26, according to a Bloomberg survey. Crude stocks last week drew for a fourth week with a rise in exports and drop in imports offsetting a drop in refinery runs and ongoing production at 13.3mbpd.  US crude exports to NWE are on track for a record high in July at 1.6mb/d amid improving arbitrage economics, strong US production, and rising European refinery runs, Platts said. Cushing stocks fell to the lowest since February while refinery utilisation fell to the lowest since May 17 at 91.6%. Utilisation is expected to rebound by 0.60% this week.
• Gasoline stocks last week showed a large draw as four week implied gasoline demand reversed most of post July 4 holiday decline to rise to 1.9% above the previous five year average. The last couple of years have seen a seasonal decline in demand after July so any support in the coming weeks could take levels further above normal.
• Distillates stocks also fell driven by a rise in implied demand to just 0.3% below the previous five year average along with higher exports, and dip in production.  US diesel export loadings to Europe surged to record highs in July as the trade arbitrage for USGC diesel to Europe remained robust, Platts said.
• The API data yesterday showed a crude draw of 4.5mbbl, a Cushing draw of 0.93mbbl, gasoline draw of 1.92mbbl and distillates draw of 0.32mbbl.