US Daily Oil Summary: Crude Stocks Rise Further

US crude oil stocks rose above expectations last week to the highest level since July. Stocks at Cushing also showed another build back to the lower end of the five-year range according to the latest EIA data.

• Crude inventories rose 8.7mbbls to the highest since July supported by a slight dip in exports and higher imports while production held up at record levels again. Cushing stocks continue to regain ground back to the lower end of the five year range while refinery utilisation as expected increased as facilities return from maintenance. Overall rates of 87% are still below the 9 year average of around 90%.
• Distillates stocks fell again to the lowest since May 2022 despite an increase in production driven by a drop in imports and slightly higher exports. Four-week implied demand was unchanged on the week and therefore still near the five year range lows.
• Gasoline stocks unexpectedly built with a drop in implied demand to halt the recovery seen over the previous few weeks. Gasoline production dipped on the week despite the higher refinery runs but imports rose and exports fell to add to the overall build.
• Economic Data: US initial jobless claims were lower than expected at 209k (cons 227k) in the week to 18 November, covering the payrolls reference period, after a slightly upward revised 233k (initial 231k). The four-week average dipped 1k to 220k, consolidating the climb off a recent low of 206k in mid-October back to roughly the 2019 average of 218k.
• USD: Lower-than-expected US jobless claims data sparked some further relief for the greenback on Wednesday, with the USD index (+0.45%) extending the bounce from yesterday’s lows to just shy of 1%. The USD rally was strengthened by some higher revisions to both UMich sentiment data and more importantly, the inflation expectations component.