US Daily Oil Summary: Cushing Stocks At 9-Year Low

The latest EIA weekly petroleum data showed another decline in crude stocks at Cushing to the lowest since October 2014 at 21.01mbbls.

• Tank storage of below 20mbbls, between 10%- 20% of its 98mbbl of capacity, is close to operational low, below which oil is difficult to remove.
• Crude stocks showed a larger than expected draw driven by a bounce in exports back over 5mbbls after the decline seen last week.
• EIA Weekly US Petroleum Summary - w/w change week ending Oct 13: Gasoline stocks -2,370 vs Exp -240, Implied mogas demand +362, Distillate stocks -3,185 vs Exp -890, Implied dist demand +746.
• DIESEL - Middle Eastern diesel shipments to Europe have fallen this month, with some being replaced by US shipments, Platts data showed. US diesel exports to Europe are to 188kbpd so far in October, up from 122kbpd in September.
• Regarding the ongoing negotiations between the US and Venezuela’ the Maduro government agreed to electoral guarantees for its political opposition in the 2024 presidential election Tuesday – opening the door for possible US sanctions relief for its oil. Meanwhile, Trinidad and Tobago obtained an amended license from the US Treasury on Tuesday allowing it to pay for imports Venezuelan gas in cash.
• USD: The greenback traded with a consistent upward bias throughout Wednesday’s session, with waning equities prompting haven demand and substantial weakness for some emerging market currencies.
• POLITICS: House Judiciary Chair Jim Jordan (R-OH) has dropped five votes in the rollcall to elect a new speaker. Due to the razor thin Republican majority in the House, those votes mean he is almost certain to lose his second ballot in two days, barring the unlikely event of a Democrat rebellion of unforeseen absences.
• President Biden arrived in Israel this morning for a high-risk trip to lend support to Israel and prevent the war in Gaza expanding into a broader regional conflict.
• MBA mortgage applications slipped -7% last week (refis -10%, purchases -6%). It came as the 30Y contract rate pushed 3bps higher to 7.70%, after a sharp 14bp increase the week before, for a new cycle high and highs since late 2000. The recent increase has been along with the significant push higher in long-term Treasury yields. It saw purchase applications fall to fresh lows since 1995.