wheeloffortunewebsite| Brief review of crude oil: U.S. crude oil inventories increased unexpectedly, European and American crude oil futures fell for the third consecutive trading day

Zhuochuang Information

1. U. S. Energy Information Administration data: U.S. commercial crude oil stocks increased by 182 last weekWheeloffortunewebsite.50,000 barrels

2. The minutes of the Fed meeting show a lack of confidence in pushing ahead with interest rate cuts.

3. Gasoline demand in the United States continues to increase

Us crude oil inventory increases unexpectedlyWheeloffortunewebsiteCrude oil futures in Europe and the United States fell for the third day in a row after Federal Reserve minutes showed that interest rate cuts could be delayed, adding to concerns about oil demand. Wednesday, May 22, New York Mercantile Exchange West Texas light crude oil settlement price for July 2024 futures 77 per barrelWheeloffortunewebsite.57 US dollars, down 1.09 US dollars, or 1.39%, compared with the previous trading day, with a trading range of 77.25-78.41 US dollarsWheeloffortunewebsiteLondon Intercontinental Exchange Brent crude for July 2024 settled at US $81.9 per barrel, down US $0.98, or 1.18%, from the previous trading day, with a trading range of US $81.57-82.63.

The minutes of the Fed's monetary policy meeting from April 30 to May 1 released on Wednesday showed that Fed officials were increasingly worried about inflation at their recent meeting, with members saying they lacked confidence to push for rate cuts. But at the same time, they said they still believe that price pressure will ease, but the rate of relief will be slower. "the Fed is not expected to cut interest rates before the autumn meeting," John Kiduff of Again Capital was quoted by Reuters as saying.

Lower interest rates will lower borrowing costs and free up funds that could boost economic growth and oil demand.

The crude oil market was under pressure from weak market fundamentals, with falling spot Brent prices and weak refinery profit margins weighing on crude oil futures trading. Reuters quoted Ole Hansen, head of commodity strategy at Saxo Bank, as saying this could force OPEC and its production reduction allies to extend production cuts at their meeting in early June to support oil prices.

The physical crude oil market has been weakening. The rise in the Brent crude contract in recent months is close to its lowest level since January, another sign that concerns about recent supply constraints are easing. "views on the fundamental outlook for the market remain grim," said Tamas Varga, an analyst at oil broker PVM.

Last week, US refinery operating rates continued to rise, with net crude oil imports falling by 4.7 million barrels, while commercial crude oil stocks unexpectedly increased, while gasoline stocks fell and distillate stocks increased over the same period. We have found the real reason for the increase in commercial crude oil inventories from the statements released by the US Energy Information Administration, which is inventory adjustment. In the EIA classification table, we see an upward adjustment of crude oil inventory data of 403000 barrels per day in row 13, which means that the total oil inventory has increased by about 2.8 million barrels per week, including an increase of 1.8 million barrels in commercial inventories and 1 million barrels in strategic stocks. This is a balanced project that used to be called not counting data. This is part of the current US crude oil inventory, and it is also one of the reasons for the increase in crude oil inventory. At the same time, the US Energy Information Administration cut inventories last week, resulting in an increase of 4.7 million barrels compared with last week.

According to the U.S. Energy Information Administration, U.S. crude oil stocks, including strategic reserves, totaled 827.649 million barrels in the week ended May 17, 2024, an increase of 2.82 million barrels over the previous week. U.S. commercial crude oil stocks were 458.845 million barrels, an increase of 1.825 million barrels over the previous week. U.S. gasoline stocks totaled 226.822 million barrels, down 945, 000 barrels from the previous week The stock of distillate oil was 116.744 million barrels, an increase of 379000 barrels over the previous week. Commercial crude oil stocks are 0.81% higher than the same period last year; 3% lower than the same period of the past five years; gasoline stocks are 4.88% higher than the same period last year; 2% lower than the same period of the past five years; distillate stocks are 10.48% higher than the same period last year and 7% lower than the same period of the past five years. Total US commercial oil inventories increased by 7.495 million barrels. The total volume of refinery processing in the United States averaged 16.482 million barrels per day, an increase of 227000 barrels over the previous week, and the operating rate of refineries was 91.7 percent, an increase of 1.3 percent over the previous week. Last week, the United States imported an average of 6.663 million barrels of crude oil per day, 81000 barrels less than the previous week, while oil products imported an average of 207.9 barrels per day, an increase of 215000 barrels over the previous week. Crude oil stocks in the closely watched Cushing region of Oklahoma increased by 1.325 million barrels to 36.32 million barrels. In the past week, the US strategic oil reserve has increased by 990000 barrels to 368.804 million barrels.

According to the US Energy Information Administration, US crude oil exports averaged 4.73 million barrels per day in the week to May 17, 2024, an increase of 595000 barrels per day over the previous week and 181000 barrels per day over the same period last year. In the past four weeks, US crude oil exports averaged 4.313 million barrels a day, up 4.7 per cent from a year earlier. Since the beginning of this year, US crude oil exports have averaged 4.273 million barrels a day, an increase of 3.2 per cent over the same period last year. In the past week, US net crude oil imports averaged 1.933 million barrels a day, down 676000 barrels from the previous week. The total net export of US oil products averaged 4.567 million barrels per day, an increase of 279000 barrels over the previous week. The total net exports of crude oil and oil products from the United States averaged 2.634 million barrels per day, an increase of 955000 barrels over the previous week.

In the week to May 17, the United States produced an average of 13.1 million barrels of crude oil per day, the same as the average daily output the week before, an increase of 800000 barrels over the same period last year. In the four weeks to May 17, the United States produced an average of 13.1 million barrels per day, 6.7 per cent higher than the same period last year. So far this year, the US has produced an average of 13.113 million barrels of crude oil a day, 7.0 per cent higher than the same period last year.

Demand for gasoline and distillates in the United States fell year-on-year, while month-on-month growth continued. According to data from the US Energy Information Administration, in the four weeks to May 17, 2024, the total demand for oil products in the United States averaged 20.198 million barrels per day, 0.7% higher than the same period last year; the average demand for automotive gasoline was 8.901 million barrels per day, 1.8% lower than that in the same period last year; the average demand for distillate oil was 3.72 million barrels per day, 6.1% lower than the same period last year. The four-day average demand for kerosene-based aviation fuel is 3.6% higher than that of the same period last year. In the weekly demand, the total US oil demand averaged 20.03 million b / d, 27000 b / d lower than the previous week, of which the US gasoline demand was 9.315 million b / d, 439000 b / d higher than the previous week, and the average daily demand for distillate was 3.883 million b / d, 52000 b / d higher than the previous week's average.