Extract from crude oil:
US crude stocks fell by 6.5 mb w/w to 475 mb, lower by 17.5 mb y/y even before adjusting for crude that has gone to fill pipes, helping drag total liquids stocks lower by 4.6 mb w/w to 1,312 mb, lower by 50 mb y/y. The crude draw was driven by high runs, which rose by 0.17 mb/d w/w to another monstrous record high, at 17.6 mb/d, up by nearly 1 mb/d y/y—boosted by US refining margins climbing to their 2017 highs. This pushed utilisation to 96.3%, a level not seen since 2005. Imports fell w/w by 0.5 mb/d to 7.7 mb/d, lower by 0.6 mb/d y/y, which further supported the draws, as did exports at over 0.7 mb/d. While crude stocks are still 90 mb above the five-year average, when adjusted for such stellar refinery runs (and end-user demand) on a days of forward cover basis, crude stocks are only 3 days above the five-year average, compared to nearly 9 days at times during Q1 17. Cushing stocks built however, by 0.6 mb.
Extract from oil products:
US gasoline stocks rose for the first time in eight-weeks, up by 3.4 mb w/w to 231.1 mb. The build narrowed the y/y deficit from 10.5 mb last week to 4.3 mb. PADD 3 gasoline stocks increased w/w by 1.4 mb as exports begin to moderate—weekly export data, whilst prone to revisions, was the lowest this year. Whilst the Salina Cruz refinery is still not producing finished products and looks unlikely to run at full-capacity in the short-term, Pemex’s import requirements should fall in line with recovering throughputs over the coming weeks. PADD 1 stocks rose for a second straight week, up by 1.4 mb as imports into the USEC, at 0.9 mb/d, hit the highest weekly level since 2014. Whilst the upside to imports into the USEC remains limited amidst refinery issues in Europe, interest in shipping gasoline from the USGC into PADD 1 appears to have picked-up as we move into the transitioning period between summer and winter specifications—the Colonial pipeline will return to allocation during the 46th cycle and a number of spur lines are fully allocated in the 45th cycle.