US Daily Oil Summary: US Weekly Crude Production Hit Record

US weekly oil production rose to a record high of 13.2m b/d in the week ending Oct. 6, according to EIA data.

• The increased production, coupled with falling exports, helped US stocks to also climb on the week. The EIA Weekly US Petroleum Summary for the week ending Oct 6 showed Crude stocks up by 10.176m bbl compared to expectations of a 431k decline.
• US gasoline stocks fell 1.313m bbl on the week, steeper than the expected fall of 128k bbl. Gasoline demand rose by 567k bbl. Despite the build, gasoline stocks remain low.
• Distillate stocks fell by 1.837m bbl, also a sharper fall than earlier expectations of a 712k bbl decline.
• The Biden administration has targeted two tankers and their owners with sanctions for being in breach of the G7 oil price cap of $60/bbl.
• The sanctioned entities were Turkey-based Ice Pearl Navigation SA, owner of the Yasa Golden Bosphorus, and UAE-based Lumber Marine SA, owner of the SCF Primoyre.
• U.S. CPI rose 0.396% in September and 3.7% from a year ago, the Bureau of Labor Statistics reported Thursday, a tenth higher than markets expected, while core CPI added 0.323% and 4.1% over the month and year, respectively, in line with expectations. The three-month annualized rate for core CPI rose to 3.1% in September from 2.4% the previous month.
• The Labor Department in a separate report said 209,000 people filed for initial jobless claims in the week ending Oct 7, the same as the week before and a tad lower than the 210,000 expected.
• USD: Slightly firmer than expected US inflation data sparked a shift higher for US treasury yields and an associated recovery for the greenback. A persistent USD bid throughout the session tilted the USD index back into minor positive territory on the week.