EIA Weekly Petroleum Status Report Commentary

• Bearish crude: Crude oil stocks fell by 2.0 million barrels last week, attributed to a 631,000 bpd decrease in crude oil imports. Refineries decreased consumption of crude oil by 98,000 bpd
• Distillate stocks ↑2.5 million barrels: this is the largest build since April 23 and is 1.7 million barrels above Reuters survey expectations
• Refinery utilization ↓1% to 88.4%, reversing most of last week's unexpected 1.5% increase
• Crude oil at the closely-watched Cushing, OK storage nexus ↓0.8 million barrels to 36.0 million barrels, the second consecutive draw of about 800,000 barrels. Stocks are now 2 million barrels off of the all-time high set on May 14th

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EIA Weekly Petroleum Status Report Commentary

• Crude oil stocks built 2.0 million barrels overall, though stocks at Cushing, OK drew 0.8 million, after Gulf Coast crude oil imports surged by 501,000 bpd week-on-week to 5.9 million bpd
• Refinery utilization rate ↑1.5% to 89.4% after refineries increased gross inputs by 253,000 bpd
• The contango in WTI is slightly narrower on the draw in Cushing: Aug10/Dec10 is $0.02 tighter at -$0.79
• Neutral motor gasoline: Total mogas inventories ↓0.7 million barrels, in-line with the ↓0.1 million barrels expected
• Somewhat bullish distillate: stocks ↑0.3 million barrels, vs. ↑1.3 million barrels expected

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Bunkerspot June/July 2010 article by HCEnergy's Chris Thorpe

EIA Weekly Petroleum Status Report Commentary

• The 0.98% fall in the US Dollar Index and rallying equity markets are the principal drivers of the market today; the EIA release contained few surprises
• Crude oil stocks ↓1.8 million barrels, vs. ↓0.9 million expected, after refineries increased utilization by 1.6% to 89.1%
• Cushing, OK crude oil inventories ↓0.5 million barrels, sustaining today's $0.15 narrowing of the July/August contango in WTI
• A 128,000 bpd decrease in Distillate product demand helped push inventories ↑1.8 million barrels, vs. ↑0.4 million expected

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EIA Weekly Petroleum Status Report Commentary

• Gasoline stocks fell by 2.6 million barrels, much more than the -0.5 million barrels expected by analysts. An increase in production (149,000 bpd) offset a decrease in imports (148,000 bpd), suggesting that gasoline demand was considerably higher than expected.
• Product cracks are continuing yesterday's rally, supported by the fourth consecutive reduction in refinery utilization: ↓0.3% to 87.5%
• Crude oil imports ↓473,000 bpd, leading to a larger-than-expected 1.9 million barrel draw in stocks
• Crude oil stocks at Cushing, OK reversed last week's 300,000 barrel loss, returning levels to the all-time high of 37.9 million barrels