US Daily Oil Summary: Crude Stocks Build

Crude stocks showed a larger than expected build with production holding at record levels despite ongoing strong exports and a drop in imports.

• Crude stocks are now the highest since early July and inline with the five-year average for the current time period. Cushing stocks meanwhile are the highest since early September, although remain about 30% below the five-year average for this time of year.
• EIA weekly US petroleum data also showed a big counter seasonal drop in weekly distillates implied demand.
• High profile companies in the oil and gas industry have sent delegations to Venezuela in the last month as US sanctions easing boots interest. This is despite the US reiterating that sanctions relief may only be temporary.
• USD: After a moderate extension of weakness in early trade, the USD index grinded higher across APAC and European hours. A mixed set of US growth/PCE data prompted some two-way price action within contained ranges and the USD index remains close to unchanged on the session.
• Real US GDP was stronger than first thought in Q3, revised to 5.15% annualized (cons 5.0, initial 4.88) in the 2nd Q3 release, from 2.06% in Q2.
• However, and importantly, personal consumption was weaker than first thought, albeit at a still strong 3.59% (cons 4.0, initial 3.98) after 0.8% in Q2
• (MINI) WASHINGTON - Federal Reserve Bank of Atlanta President Raphael Bostic Wednesday said he expects a continued fall in inflation, in part because economic activity will slow in the coming months because of restrictive monetary policy and tighter financial conditions.