DOE Inventory Data Positive for Crude Oil Prices, Says National Alliance

The Energy Department crude inventories for the week ended June 15 showed a draw in commercial crude stocks of 5.9 million barrels, a build in gasoline inventories of 3.3 million barrels and a build in distillates of 2.7 million barrels, National Alliance said. Total key products (Gasoline, distillates, jet fuel and resid) built 5.8 million barrels.

– Refinery utilization of 96.7%, was up slightly from last week’s number of 95.7%.

– Crude oil imports were up 0.1 million barrels per day from last week’s number to 8.2 million barrels per day and oil exports were up 0.3 million barrels per day at 2.4 million barrels per day.

– US crude oil production was flat vs. last week’s level at 10,900 million barrels per day. Alaskan oil production was up 1 million barrels per day implying a 1 million barrels per day weekly decline from onshore US/GOM. National Alliance said it would caution against reading much into these widely followed numbers as these are generated algorithmically and aren’t actual data.

– The crude draw Wednesday morning was much more bullish than yesterday’s API build but the products builds were a fair bit larger than last night’s API builds which should still be slightly positive for crude today. Overall, the data as slightly positive for oil prices over the longer-term as the aggregate draw (oil and key refined products) of 0.1 million barrels implies that the market is in a supply deficit, National Alliance said.