Conclusion: Overall inventories built this week, particularly crude (which is seasonally normal). Cushing still drew, we think this needs to end soon, which probably will require the WTI-Brent gap to close a bit further. Production growth remains very strong. We remain very cautious on flat price at this level.
- This week saw a rare build in total petroleum stocks. The 2.3mb build was 1.4mb larger than normal. Crude built 6.8mb, less than normal, while products saw draws. Interestingly, despite the large build in crude, Cushing continued to decline sharply, down 2.2mb.
- Total products supplied up 0.4mb/d at seasonally very high 21.0mb/d
- Both imports and exports were up this week, leaving net imports up 0.5mb/d from last week at 4.6mb/d, down only 0.4mb/d year-over-year
- Refinery utilization was down 2.8% w-o-w at 88.1%. Input are sharply down as well
- and inputs are back in line with last years levels, but the 4week average inputs remains above last years levels
- Crude output was up a further 44kbd, which brings crude production to almost 10mb/d, up 1mb/d year-over-year
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