Previous Story
Crude Consolidates Despite Large Inventory Build
Crude oil prices remain range bound despite a stronger than expected inventory report released on Wednesday from the Department of Energy. Imports are increasing at a faster rate than U.S. production is declining which is weighing on petroleum prices.
U.S. crude oil imports averaged about 7.6 million barrels per day last week, up by 378,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged over 7.3 million barrels per day, 1.7% below the same four-week period last year. The increase in imports lead to an increase in inventories.
U.S. commercial crude oil inventories increased by 4.0 million barrels from the previous week. Gasoline inventories increased by 3.3 million barrels last week, and are near the upper limit of the average range. Distillate fuel inventories, which include heating oil, decreased by 0.3 million barrels last week but are in the middle of the average range for this time of year.
Demand remains strong. Total products demand over the last four-week period averaged over 19.5 million barrels per day, up by 1.5% from the same period last year. Over the last four weeks, gasoline demand averaged about 9.1 million barrels per day, up by 4.2% from the same period last year. Distillate fuel demand averaged 3.8 million barrels per day over the last four weeks, up by 0.2% from the same period last year. Jet fuel demand is up 11.8% compared to the same four-week period last year.
The post Crude Consolidates Despite Large Inventory Build appeared first on Forex Circles.
