US weekly crude oil inventories +2025K vs -1917K expected

  • Prior was -5068K
  • Gasoline -812K vs +1075K expected
  • Distillates +2592K vs +1060K expected
  • Cushing -1593K vs +256K prior

API data released late yesterday:

  • Crude +1845K
  • Gasoline +1821K
  • Distillates vs +3376K
  • Cushing vs -1839K

There is a bit of evidence of some loosening in the crude market here but it’s one week of data. Gasoline remains extremely tight with inventories 10% below the long-term average.

EIA sees faster US oil production growth

  • Sees 2022 US output increasing 730k bpd vs 720k bpd a month ago
  • Sees 2023 output increasing 1050k bpd vs 940k a month ago

We’ve had oil prices surging and these numbers just highlight how difficult it is to bring on production. 10,000 barrels per day in nothing and even adding 1 million barrels next year won’t move the needle as the 1 mbpd release of the SPR runs off.

WTI crude is trading at $119.22 today, up 85-cents.WTI intraday

Oil – Saudi price rises, oil trading higher

Reuters have popped up an week-opener also, citing the rise for futures on the hike in prices from Saudi Arabia over the weekend. ICYMI:

Reuters add:

  • Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.

Yep. I described the hike in output last week as a ‘drop in the bucket’.

CL update:

cl oil 06 June 2022
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