Weekly DOE Oil Charts - July 7, 2017 - Research

Conclusion: Bullish. Strong start into July with another sharp decline in stocks. Ignoring the weekly fluctuation in demand data, average demand appears to remain strong. Production appears to growing strongly now on a y-o-y basis (mainly a base effect due to last years sharp decline)

Total petroleum stocks drew 7mb, 10mb more than normal and 5.3mb more than expected. Large chung of that was in SPR
Crude (incl. SPR) drew a whopping 10.8mb, 7.1mb more than normal. Gasoline, jet and residual fuel showed meaningful decline, only distillates and “other” bucked the trend
The draws occurred despite the massive apparent drop in demand of -2.3mb/d. The DOEs implied demand data continues to be a mess and weekly changes should be just ignored. 4wk average suggest that demand holds up well near last years levels
Net imports remained roughly 1mb/d below last years levels
Refinery utilization rebounded by +0.9% to 94.5%, pushing 4wk average again slightly above last years levels. Crude and gross inputs remain >0.5mb/d above last years levels
Crude output again sharply higher, now nearly 1mb/d above last years levels. This is mainly an effect from last years decline in output at this time of the year.

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