EIA DATA: Distillate stocks hit fresh 13-mth high on slowing demand, exports

Quantum Commodity Intelligence – US distillate fuel stocks rose to a fresh 13-month high in the second week of February as domestic demand and exports slowed, while output marginally increased, weekly EIA data showed.

Distillate inventories reached 121.9 million barrels by February 19, climbing 2.7 million barrels on the week, its second-largest weekly gain in nearly three months.

The weekly rise beat market expectations as the API put a 1.37m bbl weekly rise, while market analysts polled by Reuters had pencilled in a 1.1m bbl fall.

The gains were made mostly in the US Gulf as refineries shifted towards more distillate production, while East Coast stocks were static at their 13-month high of 36.6m bbls.

While distillate fuel stocks have risen three out of the past four weeks, they remain 12% (16.5m bbls) below the same point in 2019 and some 18% below the pre-Covid 2015-2019 average.

Stocks rose as domestic demand disappointed, sliding by 123,000 bpd on the week (-3.2%) to 3.77m bpd, some 8.4% below 2019 levels.

Exports also dipped back below the 1m bpd mark, while imports doubled on the week to 414,000 bpd, meaning the net outflow of distillates was curtailed to 544,000 bpd – its second lowest level in a year.

Meanwhile, distillate production levels rose by nearly 200,000 bpd (4.2%) on the week to 4.44m bpd, roughly in line with the five-year average, even as crude throughput was static at 15m bpd.

Jet

Jet fuel stocks rose by 0.7m bbls on the week to a two-month high of 37.3m bbls but remaining 14% (6m bbls) below 2019 levels.

Output was a touch higher at 1.54m bpd, while deliveries slowed to 1.32m bpd, down 9% from pre-pandemic levels.

At the same time, net exports rose to a two-month high of 111,000 bpd, limiting the domestic stock gain.