Inventory Defty Market Creates expectations
Commercial raw inventions increased by 1.3 million barrels, increased the total shares to 443.2 million barrels to 6% below the five -year seasonal average. The build rapidly deviated with the expectations of consensus for the 900,000 barrel draw draws. Gasoline invention increased by 0.8 million barrels and 2% below seasonal criteria. Distilled shares obtained 0.6 million barrels but sat down 16% at an average of five years. Propane/Propalen inventions climbed from 2.7 million barrels, but also historically tight.
Import strengthens despite annual decline
The import of crude oil increased by an average of 6.1 million barrels, 247,000 barrels from last week. However, the average of the four-week is 13.5% year-on-year below, which reflects the weakness of long-term imports. The average of 747,000 barrels per day in motor gasoline imports stood at 141,000 barrels per day, both contributed to the weekly inventory builds.
Demand data points to slow down consumption
Total petroleum products have supplied an average of 19.6 million barrels per day in the last four weeks, which was a decline of 2.8% from the same period last year. Gasoline demanded 1%, and distilled fuel demand fell 4.2%. Only jet fuel showed strength, which increases 4% year-on-year, recovering travel trends.
Market forecast: short -term recession outlook
A drawdown with the market is expected, but rather than a crude inventory build and weakening the demand for the product, the near-term approach is slow. Amazing surplus can put pressure on the prices of WTI and Brent, especially if the upcoming data decrease appears. Traders should monitor the refinery run and demand closely trend for any inverted signals.
