US Weekly Oil Summary: Rig Count Rises While Stocks Fall Further

The latest EIA weekly petroleum data showed another decline in crude stocks at Cushing to the lowest since October 2014 at 21.01mbbls.

• Crude stocks showed a larger than expected draw driven by a bounce in exports back over 5mbbls after the decline seen last week.
• EIA Weekly US Petroleum Summary - w/w change week ending Oct 13: Gasoline stocks -2,370 vs Exp -240, Implied mogas demand +362, Distillate stocks -3,185 vs Exp -890, Implied dist demand +746.
• US total rig count increased by 2 on the week to 624, according to Baker Hughes
• The Biden administration and the government of Venezuelan President Nicolás Maduro have agreed to a deal to ease US sanctions on Venezuela’s oil industry, while Venezuela would allow competitive and international monitored presidential elections next year.
• The sanctions easing by the Biden Administration towards Maduro's regime will take near immediate effect and last for 6-months at present.
• US oil refineries are boosting production of middle distillates such as diesel and jet fuel ahead of the winter amid rising demand and tight supply, although poor gasoline margins are hampering profits, according to Reuters.
• USD: The late pullback for front-end US yields this week has weighed on the greenback overall, with the USD index set to close around 0.5% lower on the week. However, mixed performance across G10 FX and the ongoing geopolitical uncertainty have contained any downside momentum for the index.
• The Federal Reserve will "carefully" consider whether to raise interest rates further and how long to keep them high, given "very favorable" decline in inflation over the summer, indications that the labor market is cooling and the likelihood of more "meaningful tightening" still filtering through from past increases, Fed Chair Jerome Powell said Thursday.
• Initial jobless claims were lower than expected at a seasonally adjusted 198k (cons 2100) in the week to Oct 14, covering a payrolls reference week, after a marginally upward revised 211k initial 208k.