Highlights
Weekly petroleum inventory data are mixed showing a sizable drawdown in crude stocks but steep increases in stocks of gasoline and distillates. Crude stocks fell 1.6 million barrels in the July 18 week to 295.3 million. Gasoline stocks, reflecting what the Energy Information Agency said is increased production, rose 2.9 million barrels to 217.1 million. Evidence in this report shows that supply of gasoline is well ahead of demand: supply is up 6.0 percent year-on-year while demand is down 2.4 percent. Distillate stocks rose 2.4 million barrels in the week to 128.1 million barrels. Despite the gains in gasoline and distillate stocks and despite the increase in gasoline production, refineries are still operating at moderate levels, at 87.1 percent of capacity in the latest week. Oil prices first rose in immediate reaction to the crude oil draw then quickly fell back below pre-data levels on the gasoline build.