US Daily Oil Summary: Stock Draw Exceeds Expectations

the EIA data showed larger than expected stock draw, with crude stocks down 2.136m bbl compared to an expected fall of 718k bbl.

• EIA Weekly US Petroleum Summary - w/w change week ending Sep 15: Gasoline stocks -831 vs Exp +667, Implied mogas demand +103, Distillate stocks -2,867 vs Exp +177, Implied dist demand +588
• The ability to export crude from the US narrows with strong oil futures markets posing a problem for physical buyers according to Bloomberg. The price of US barrels delivered into Europe has surged since late last week according to the S&P Global pricing window. US crude exports have risen above 5mbpd at times this year but last week fell back down to just over 3mbpd.
• The Federal Reserve left interest rates steady at 22-year highs Wednesday but kept the door open to one more increase in borrowing costs this year, while reducing the number of rate cuts officials see in 2024. After leaving the federal funds rate in a 5.25%-5.5% range FOMC members penciled in another quarter-point rise this year in their quarterly Summary of Economic Projections.
• Following the Fed decision, the greenback is spiking, with most major currencies reversing around 50-60 pips from session bests against the dollar.
• House Speaker Kevin McCarthy (R-CA) endured another bruising day yesterday when conservative Republicans sided with Democrats to bring down a Pentagon spending bill and he was forced to abandon a vote on a 30-day stopgap to avert a government shutdown.