‘US crude and gasoline stockpiles are significantly higher compared with their five-year averages, which will weigh on prices.’ — Abhishek Kumar, Energy’s Global Gas Analytics
US oil inventories fell for the second consecutive time last week, official data showed on Wednesday. As reported by the Energy Information Administration, the number of barrels of crude oil dropped 2.5M in the week ended June 16, compared to the preceding week’s decline of 1.7M barrels, while analysts predicted a much lower drop of 1.2M barrels. US crude oil production climbed to 9.35M barrels per day, 20K higher than in the prior week, the EIA reported. Gasoline stockpiles plunged 578K, whereas analysts anticipated a gain of 444K barrels. In the meantime, distillate stocks advanced 1.1M barrels, surpassing expectations for a 465K-barrel increase. US refinery runs fell 104K bpd as the utilisation rate dropped 0.4% to 94%. The number of barrels of crude oil held in storage at the Cushing, Oklahoma, plunged 1.08M barrels during the reported week. Oil prices rose shortly after the report was published but failed to sustain those gains. Thus, soon after the release, West Texas Intermediate futures fell to $43.41 per barrel, whereas Brent futures declined to $45.79 per barrel.
