Gasoline and Distillate Inventories Built on Sharp Fall in Demand

The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks soared +15.47 mmb to 1293.31 mmb in the week ended May 28. Crude oil inventory plunged -5.24 mmb (consensus: -2.04 mmb) to 474.03 mmb. Stockpile decreased in 2 out of 5 PADDs. PADD 3 (Gulf Coast) saw declines of -6.79 mmb. Cushing stock added +0.17 mmb to 45.7 mmb. Utilization rate increased +2.6 percentage points to 91.3% while crude production added +0.2M bpd to 11M bpd for the week. Crude oil imports increased +1.01M bpd to 6.64M bpd in the week. Concerning refined oil product inventories, gasoline inventory jumped +7.05 mmb, to 241.03 mmb as demand declined -7.32% to 8.48M bpd. The market had anticipated a +0.7 mmb gain in stockpile. Production slipped -1.41% to 9.43M bpd while imports soared +12.54% to 1.05M bpd during the week. Distillate stockpile rose +4.41 mmb to 137.21 mmb. The market had anticipated a +1.36 mmb increase. Demand slumped -10.5% to 3.41M bpd. Production added +2.31% to 4.92 mmb while imports fell -63.37% to 0.19M bpd during the week.

A day earlier, the industry-sponsored API estimated that crude oil inventory was down -2.11 mmb. Gasoline stockpile gained +2.41 mmb, while that for distillate added +3.75 mmb.