18:00 - EIA Stocks Reports (Weekly Change):
- Oil Stocks: 6,41mn/b (Expected: 1,2mn/b; Previous: 5,2mn/b)
- Gasoline Stocks: -0,94mn/b (Expected: -2,6mn/b; Previous: -4,73mn/b)
- Distillate Stocks: -0,64mn/b (Expected: -2,7mn/b; Previous: -0,64mn/b)
According to the latest EIA report, the USA has moderately lower crude oil processing, low gasoline and distillate stocks, high propane stocks, and is a strong net exporter of petroleum products. The country is increasingly relying on Canadian oil, and in the pricing market, we see cheaper oil and gasoline but more expensive diesel, which increases cost risks in transportation and for industrial consumers, while simultaneously improving energy security through the rebuilding of the SPR.
- Oil stocks have risen significantly above expectations, and the visible oversupply in the market may exert further pressure on crude prices. The EIA report indicates that the US government is using low prices to rebuild the strategic reserve, which was utilized to control prices in 2022.
- Additionally, the increase in oil stocks is supported by a combination of reduced demand for gasoline and limited refinery processing capacity. It is worth noting that economic entities in the USA are currently operating at record low levels of fuel stocks.
- These stocks are not being increased despite falling prices, which suggests that suppliers anticipate the downward trend to continue. At the same time, in the event of a sudden market change, this could lead to greater price sensitivity to increases.
- Internationally, despite the increase in oil stocks, the USA is increasing its exports and reducing imports. The main direction of oil imports for the USA remains Canada. A significant decline can be observed in imports from Venezuela, which have been replaced by supplies from Mexico.
OIL.WTI (H1)
Source: xStation5
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