Weekly DOE Oil Charts - August 25, 2017

Conclusion: Relatively strong stats, larger than normal inventory draws continue. The oil market is being roiled by the storm related issues in Texas. Currently the market puts more emphasize on the refinery shutdowns while ignoring the production losses. On net, the world is loosing petroleum output with relatively benign demand destruction. WTI remains un der pressure as traders buy product spreads, but we believe once the dust settles, it will become clear that the crude production losses will outweigh the temporary loss in refining demand. We continue to expect total petroleum stocks to decline going forward, which will create upside pressure on both spreads and flat price.

  • Healthy draw in total petroleum stocks of 1.1mb, 4.7mb more than normal. Crude drew 5.7mb more than normal.
  • Implied demand remains near record highs at 21.43mb/d
  • Implied demand is again down 1mb/d, 4 week average demand remains very strong
  • Net imports down 0.2mb/d, 1.5mb/d below last years levels
  • Refinery runs at 96.6% with record crude and gross inputs. However, expect this to drop sharply as result of the shutdowns in Texas
  • Crude output flat, up 1mb/d yoy. Expect this to drop as well due to the situation in Texas


View the Entire Research Piece as a PDF here.


The views and opinions expressed in this article are those of the author(s) and do not reflect those of Goldmoney, unless expressly stated. The article is for general information purposes only and does not constitute either Goldmoney or the author(s) providing you with legal, financial, tax, investment, or accounting advice. You should not act or rely on any information contained in the article without first seeking independent professional advice. Care has been taken to ensure that the information in the article is reliable; however, Goldmoney does not represent that it is accurate, complete, up-to-date and/or to be taken as an indication of future results and it should not be relied upon as such. Goldmoney will not be held responsible for any claim, loss, damage, or inconvenience caused as a result of any information or opinion contained in this article and any action taken as a result of the opinions and information contained in this article is at your own risk.

 

 

 

What To Read Next