Todays EIA report shows a draw across the board for energy stocks.
- Crude Inventories 🔽3.7 Mbbls
- Gasoline 🔽4.1 Mbbls
- Distillates 🔽3.6 Mbbls
- Ethanol 🔽339 Kbbls
- SBR 🔽414 Kbbls
Significant drops in stocks across the board. The Energy Information Administration reported a crude oil inventory draw of 3.7 million barrels for the week to March 31. At 470 million barrels, inventories are about 4 percent above the five-year average. Further, this week’s breaking news about OPEC+ deciding to reduce oil production by another million barrels daily had an even stronger effect on prices, pushing both Brent crude and West Texas Intermediate above $80 per barrel in a matter of hours.
EIA also reported an inventory decline in gasoline and another one in middle distillate inventories for the last week of March. In gasoline, inventories fell by 4.1 million barrels in the period, with production averaging 9.9 million barrels daily. This compared with an inventory draw of 2.9 million barrels for the previous week, with production then averaging 10 million barrels daily.
In middle distillates, the EIA estimated an inventory decline of 3.6 million barrels for the last week of March, with production at 4.7 million bpd. This compared with a distillate stock build of 300,000 barrels for the previous week, when production averaged 4.6 million bpd.