Distillate Fuel Inventories Decline
April 24, 2023
Baker Hughes reported late on Friday that 3 crude oil rigs came online this week up to a total of 591 rigs. US oil rigs have fallen by 30 rig this year.
The concerns about the Fed raising interest rates and slowing the economy and fuel demand is outweighing the prospect of tighter supplies with OPEC+ cuts and pressuring energy market lower. Last week was not a great week for the bullish outlook for prices. The oil market closed higher on Friday, but it was a weekly loss. But there are still plenty of concerns about the tight supplies so this market might be a choppy ride here for a while until the path forward becomes clearer or some other event takes place.
Reuter reported US inventories of distillate fuels have been depleting since March, reversing some of the accumulation over the previous five months, mostly because of an acceleration in exports. According to the EIA, distillate stocks stood at 112 million barrels on April 14th, down from 122 million on March 3rd. Inventories were down 18 million barrels below the prior ten-year seasonal average, widening from a deficit of 12 million barrels six weeks earlier.
US crude inventories were down 4.6 million barrels last week over week and inventories are now 2% above the five-year average.
Gasoline inventories were up 1.3 million barrels and are now 6% below the five-year average.
Distillate inventories decreased by 400,000 barrels and are now 11% below the five-year average.
Propane inventories decreased 700,000 barrels and are 27% over the five-year average.