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U.S. oil futures climb as EIA reports a nearly 11 million-barrel fall in weekly U.S. crude supplies- 24 July 2019

U.S. Oil Futures Climb as EIA Reports a Nearly 11 Million-barrel Fall in U.S. Crude Supplies

The Energy Information Administration on Wednesday reported that U.S. crude supplies fell by 10.8 million barrels for the week ended July 19. That was more than double the 4.4 million-barrel decline expected by analysts polled by S&P Global Platts.

 

The American Petroleum Institute on Tuesday reported an 11 million-barrel drop, according to sources. The EIA data also showed that gasoline inventories were down by 200,000 barrels, while distillate stockpiles rose by 600,000 barrels last week.

 

The S&P Global Platts survey had shown expectations for a supply decrease of 1.1 million barrels for gasoline, while distillates were forecast to rise by 1.7 million barrels.

 

September West Texas Intermediate crude was up 64 cents, or 1.1%, to $57.41 a barrel on the New York Mercantile Exchange. Prices were trading at $57.20 before the supply data (link).

British pound hits new two-year low as Brexit pressure continues

The British pound on Wednesday traded at its lowest level in more than two years, as concerns about the prospect of a hasty exit from the European Union continued to pressure the U.K. currency.

 

The pound GBPUSD, +0.1854% fell as low as $1.2382 vs. the U.S. dollar, down from $1.2407, marking the lowest level since April 2017.

 

Against the euro, the pound GBPEUR, +0.0632% fell as low as €1.1048, down from €1.1068.

 

Boris Johnson, the front runner to become the leader of the Conservative Party and therefore prime minister, was reported by Sky News to be considering suspending parliament for two weeks to prevent it from blocking a Brexit. His campaign said that it’s an option but that nothing has been decided.

 

Another issue is that both Johnson and his Conservative Party rival, Jeremy Hunt, have said they will not accept the so-called Irish backstop deal agreed by the current prime minister, Theresa May, with the European Union. The winner of the Tory party’s vote is expected to be announced on July 23.

 

“The rising perceived probability of a disorderly Brexit after the Oct. 31 deadline is reflected in the options market, with the sterling implied volatility curve heavily kinked around the deadline date (that is 3-4 month tenors) vs the close-to-normally upward sloping shape of the curve two to three months ago,” said strategists at ING in a note to clients.

 

The data released Wednesday met economist expectations. Consumer prices in the 12 months ending June stayed at 2%, right at the Bank of England’s target.

 

 

Summary of weekly petroleum data for the week ending June 28, 2019

Crude Oil Inventories Down 1.1 Million Barrels

Summary of weekly petroleum data for the week ending June 28, 2019

U.S. crude oil refinery inputs averaged 17.3 million barrels per day during the week ending June 28, 2019, which was 47,000 barrels per day less than the previous week’s average. Refineries operated at 94.2% of their operable capacity last week.

 

  • Gasoline production decreased last week, averaging 9.9 million barrels per day.
  • Distillate fuel production increased last week, averaging 5.3 million barrels per day.

Imports

U.S. crude oil imports averaged 7.6 million barrels per day last week, up by 929,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 7.3 million barrels per day, 13.1% less than the same four-week period last year.

 

Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 536,000 barrels per day, and distillate fuel imports averaged 98,000 barrels per day.
 

Products inventories

  • Total motor gasoline inventories decreased by 1.6 million barrels last week and are at the five year average for this time of year.
  • Finished gasoline and blending components inventories both decreased last week.
  • Distillate fuel inventories increased by 1.4 million barrels last week and are about 6% below the five year average for this time of year.
  • Propane/propylene inventories increased by 1.3 million barrels last week and are about 11% above the five year average for this time of year.
  • Total commercial petroleum inventories increased by 2.5 million barrels last week.

Products supplied

Total products supplied over the last four-week period averaged 20.9 million barrels per day, virtually unchanged from the same period last year. Over the past four weeks:

 

  • Motor gasoline product supplied averaged 9.7 million barrels per day, down by 0.1% from the same period last year.
  • Distillate fuel product supplied averaged 4.1 million barrels per day over the past four weeks, up by 1.6% from the same period last year.
  • Jet fuel product supplied was up 2.2% compared with the same four-week period last year.

 

Source: EIA

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