US DATA: Crude stocks hit 18-month low after eighth week of draws

Quantum Commodity Intelligence – US crude stocks fell for the eighth successive week last week, taking total inventories to the lowest in 18 months, according to EIA data released Wednesday.

Crude stocks fell by almost 8 million barrels to 437.6 million barrels, the lowest since the end of January, while jet production is at the highest level since before the pandemic began.

The 8-million barrel crude draw is almost twice what the American Petroleum Institute expected.

Refinery utilization rate was down 0.4 percentage points to 91.8% with crude production up marginally at 11.4 million bpd.

Exports of crude were more than half-again higher on the week, rising 1.397 million barrels to a 10-week high of 4.025 million barrels, leaving net imports of crude also at a 10-week low of 2.196 million barrels, down 1.051 million barrels on the week.

Imports of crude rose much more gently, up 346,000 barrels to 6.221 million barrels.

After last week's all-time record high for gasoline demand, demand this week fell 760,000 bpd to 9.3 million bpd, while stocks built 1 million barrels to 237 million and gasoline output dropped 356,000 barrels to 9.81 million barrels.

Jet production though was at the highest level since the middle of March 2020 at 1.477 million bpd, up 9.3% on the week, or 126,000 bpd, and compared to an average of 1.352 million bpd in June.

Jet deliveries gained 186,000 barrels to 1.557 million barrels, only a 3-week high.

Even though refinery run rates fell, products saw stock builds across the board aside from jet, which dropped 700,000 barrels to 44 million barrels and fuel oil, which fell 1 million barrels to 31 million barrels.

Key stock figures (million barrels)

Commercial crude and product stocks: 1892 m barrels, +2.5 m barrels on week.

Commercial crude stocks: 438 m barrels, -7.9 m barrels on week.

Strategic crude stocks: 621 m barrels, 0.0 m barrels on week.

Gasoline stocks: 237 m barrels, +1.0 m barrels on week.

Middle distillate stocks: 142 m barrels, +3.7 m barrels on week.

Jet stocks: 44 m barrels, -0.7 m barrels on week.

Diesel stocks: 131 m barrels, +4.4 m barrels on week.

Residual fuel stocks: 31 m barrels, -1.0 m barrels on week.

Propane/propylene stocks: 60 m barrels, +1.6 m barrels on week.

Ethanol stocks: 21 m barrels, -0.0 m barrels on week.

Key demand figures (million barrels per day)

Total oil products: 19.3 million bpd, -2.24 million bpd on week.

Gasoline: 9.3 million bpd, -0.76 million bpd on week.

Jet: 1.6 million bpd, +0.19 million bpd on week.

Middle distillates: 3.2 million bpd, -0.68 million bpd on week.

Residual fuels: 0.3 million bpd, +0.1 million bpd on week.

Propane/propylene: 1.1 million bpd, -0.01 million bpd on week.

Key production and trade figures (million barrels per day)

Crude production: 11.4 million bpd, +0.1 million bpd on week.

Crude imports: 6.2 million bpd, +0.35 million bpd on week.

Crude exports: 4.0 million bpd, +1.4 million bpd on week.

Product imports: 2.4 million bpd, -0.22 million bpd on week.

Product exports: 5.6 million bpd, +0.4 million bpd on week.