US Weekly Oil Summary: Crude Stocks See Large Build

Crude stocks as expected built again this week with production holding steady at record highs. Imports and exports both dipped slightly on the week while refinery utilisation edged higher but remains at low levels following planned and unplanned outages in the month.

• EIA Weekly US Petroleum Summary - w/w change week ending Feb 23: Gasoline stocks -2,832 vs Exp -2,347, Implied mogas demand +267, Distillate stocks -510 vs Exp -2,386, Implied dist demand -404, Tot product stocks -7,357, Ref runs +100.
• The US Energy Department is seeking 3m bbl of sour crude for the SPR for August delivery, according to a notice Feb. 26.
• The US DOE purchased 3.2mn barrels of crude oil for the SPR for July delivery, it said in a statement. The crude was purchased at an average price of $77.39/b.
• USD: Despite front-end US yields shifting lower this week and equities extending their strong performance, the USD index remains close to unchanged on the week, having traded in a tight 0.7% range. This is in keeping with one-month implied vols for the index remaining close to two-year lows.
• The S&P Global US mfg PMI was revised higher to 52.2 in the final February release (flash 51.5) after 50.7 in Jan. It’s the highest since Jul 2022.
• The Chicago Business BarometerTM, produced with MNI softened -2.0 points to 44.0 in February. This is the third consecutive monthly decline,
• Core PCE increased 0.416% M/M in January, fractionally stronger than the 0.4 median consensus which had tilted fractionally lower.
• Initial jobless claims surprised slightly higher in the week to Feb 24 at a seasonally adjusted 215k (cons 210k) after a marginally upward revised 202k (initial 201k).