Our quick take on the WEEKLY SUPPLY ESTIMATES published by the US Department of Energy (DOE) including detailed tables and charts. This week’s highlights:
Conclusion: bullish
- Large total petroleum draw of 4.7mb at a time when we usually build. -9.2mb draw vs seasonal -4.5mb vs. Bloomberg consensus
- Crude draw of 4.7mb vs. seasonal
- Interestingly Cushing built again and made new all-time high
- Total product demand up 0.2mb/d, mostly due to large pick up in distillate demand, which seems out of whack. Total demand still roughly flat year-over-year
- Net imports declined again and remain a few 100kb/d below last years levels
- Sharp pick up in refinery inputs and utilization to seasonally very high levels, which should help drawing crude stocks going forward
- Crude oil production continues to creep higher and is now 230kb/d higher than last year. We continue to ignore the balance item.
View the Entire Research Piece as a PDF here.
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