US crude oil inventories declined by 3.3 million barrels last week, as reported by the US Department of Energy in the middle of the week, Commerzbank’s commodity analyst Carsten Fritsch notes.
Crude oil stocks are currently around 5% below the 5-year average
“This was the biggest drop in inventories so far this year. According to a Bloomberg survey, an increase in inventories had been expected. However, as the American Petroleum Institute had reported an even sharper decline in crude oil inventories the previous evening, the surprise was limited, meaning that oil prices did not benefit any further.”
“The higher net crude oil imports with only a slight increase in crude oil processing would have suggested a build-up in inventories. In addition, US petrol demand and US demand for distillates also recorded weekly declines. Nevertheless, there was also a decline in stocks of petrol and distillates.”
“One reason for this could have been the continued high net exports of oil products. Crude oil stocks are currently around 5% below the 5-year average, while distillate stocks are even 7% lower. In contrast, there is a corresponding upward deviation of 2.4% in petrol stocks.”
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