US Daily Oil Summary: Crude Stocks See Larger Build

Crude stocks built more than expected with a build on the Gulf Coast driven by a large decline in exports on the week while refinery runs also showed an unexpected drop.

• EIA Weekly US Petroleum Summary - w/w change week ending Apr 05: Crude stocks +5,841 vs Exp +688, Gasoline stocks +715 vs Exp -1,838, Implied mogas demand -624, Distillate stocks +1,659 vs Exp -977, Implied dist demand -510
• US Defense Secretary Lloyd Austin has warned that Ukraine’s recent attacks on Russian refinery infrastructure are a risk to global oil markets and urged them to instead focus on military targets.
• Occidental Petroleum Corp. is due to restart some Gulf of Mexico oil production after being asked to curtail offshore production in late November following a US Gulf oil spill from a Main Pass Oil Gathering Co. pipeline.
• TotalEneries 238kbpd Port Arthur, Texas, refinery shut a distillate hydrotreater, Unit 855, after a unit upset on Monday according to a TCEQ report.
• Bloomberg reporting that the US and allies believe, "major missile or drone strikes by Iran or its proxies against military and government targets in Israel are imminent," in retaliation for an Israeli airstrike on an Iranian diplomatic compound in Damascus on April 1.
• US DATA: CPI Unrounded - Mar'24. Unrounded % M/M (SA): Headline 0.378%; Core: 0.359% (0.358% prior mth). Unrounded % Y/Y (NSA): Headline 3.477%; Core: 3.801% (3.752% prior mth)
• The US dollar has strengthened on the day as higher than expected CPI data likely means that the first Fed rate cut will be delayed until after June. The Bloomberg dollar spot index is up 0.74% on the day.