US Daily Oil Summary: Unexpected Crude Stock Build

US crude stocks built with refinery runs showing a further decline following on from the significant fall last week as refineries were slow to start operations from the cold weather disruption. Production recovered back up to 13mbpd while exports also declined on the week.

• EIA Weekly US Petroleum Products Summary - w/w change week ending Jan 26: Gasoline stocks +1,157 vs Exp +2,340, Implied mogas demand +264, Distillate stocks -2,541 vs Exp -347
• Phillips 66 has shut a section of the Oklahoma Panhandle natural gas pipeline following a fire and rupture on Tuesday morning, the company said.
• The Colonial Pipeline is preparing to introduce a 33.29 cents/b products loss allocation (PLA) charge to recover the cost of products lost to evaporation and pipeline mixing, according to Argus.
• USD: Initial greenback strength in the aftermath of the statement is reversing now as the markets look through the relatively hawkish sentence that “The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”
• The Federal Reserve held interest rates steady for the fourth straight meeting, signalling openness to cutting, but was in no rush to ease.
• Countries in the Middle East are awaiting the US response to the killing of three of its service personnel and the injuring of dozens of others in a drone strike at a Jordanian outpost after President Joe Biden stated that he had decided on the course of action that his administration will take following the attack.