The U.S. crude oil inventory levels decreased by their largest amount throughout the past year but gasoline and distillate supplies increased which indicates conflicting market trends as summer demand increases.
The Energy Information Administration reported that crude stocks decreased by 11.5 million barrels to reach 420.9 million during the week ending June 13. The market experienced a larger-than-expected crude stock reduction of 11.5 million barrels. The storage facilities at Cushing Oklahoma experienced a decrease of almost one million barrels.
The positive crude market indicators failed to boost oil prices. The price of Brent crude decreased by $1.20 to reach $75.25 per barrel and U.S. benchmark WTI dropped to $73.82 because investors processed President Donald Trump’s statement about Iran’s willingness to negotiate.
The gasoline inventory increased by 209,000 barrels to reach 230 million while distillates including diesel and heating oil rose by 514,000 barrels. The refinery utilization rate decreased to 93.2%.
The export volume increased by 1.1 million barrels per day to reach 4.4 million despite the decreasing difference between Brent and WTI prices which might reduce future export volumes.
Andy Lipow from Lipow Oil Associates predicts that gasoline demand will increase during summer which will boost refinery profit margins during this period.
