US Weekly Oil Summary: Gasoline Inventories Surge

Gasoline inventories in the US saw their highest weekly rise in over 30 years, up 10.9m bbl to 237m bbl, according to EIA data.

• Crude stocks drew more than expected driven by a large correction in exports back above 5mb/d, a drop in production from the record high levels and despite an increase in exports.
• The US is seeking up to 3 bbl of sour crude for the strategic petroleum reserve, according to a notice by the US Department of Energy
• US combined oil and gas rig count fell by one on the week to 621 rigs, according to Baker Hughes.
• Shale producer EOG Resources expects the rate of US crude output growth at less than half of the rate in 2023, according to EOG President Billy Helms this week.
• USD: The greenback started 2024 on the front foot, with the USD index rising roughly 1% across the shortened trading week. This was largely reflective of market participants tempering expectations for imminent rate cuts from the Fed, prompting what remains purely a USD correction higher at this juncture. Nuanced US data on Friday sparked substantial greenback volatility, however, the DXY settled close to unchanged on the final session of the week.
• Initial jobless claims surprisingly fell to a seasonally adjusted 202k (cons 216k) in the week to Dec 30 after a slightly upward revised 220k (initial 218k).
• S&P Global US services PMI was revised a tenth higher to 51.4 (initial 51.3) in the final December print, from 50.8 in Nov to cement its highest reading since July.
• Dec non-farm payrolls: +216k (175k survey), unemployment rate 3.7% (3.8% survey). Non-farm payroll data