U.S. commercial crude oil inventories increased by 3.6 million barrels last week, bringing total stockpiles to levels that remain 4% below the five-year seasonal average. This build in inventories comes as refinery throughput declined by 346,000 barrels per day (bpd) to 15.4 million bpd, with utilization dropping to 85.9%. The reduction in refinery runs reflects both seasonal maintenance and broader adjustments in refining operations, as facilities respond to shifting demand trends across different fuel products. Despite the lower processing rates, gasoline production increased to 9.6 million bpd, while distillate output fell to 4.6 million bpd. This divergence suggests that refiners are prioritizing gasoline production while scaling back on distillate output, possibly in response to evolving consumption patterns. Shifts in Product Balances and Market Dynamics Gasoline inventories declined by 1.4 million barrels, though they remain 1% above the five-year seasonal average. This drawdown suggests that while gasoline demand has not surged, refiners are maintaining a cautious approach to supply. In contrast, distillate inventories dropped by 1.3 million barrels, pushing stockpiles to levels 6% below the five-year average. The continued decline in distillate inventories, combined with strong demand growth in industrial and freight sectors, underscores the ongoing supply constraints in this market segment. Total petroleum consumption over the past four weeks increased by 3.4% year-over-year, with gasoline demand rising by 0.9%, while distillate demand posted a more significant 7.1% increase. The discrepancy between demand trends for these two fuel types highlights the resilience of diesel consumption, which remains a key driver of refinery economics and fuel price movements. Impact on Oil Prices and Market Sentiment Crude oil inventories continue to rise, with West Texas Intermediate ( PYTH:WTI3! ) crude oil prices falling to $67.42 per barrel, down $13.53 from the same period last year. This price decline reflects broader uncertainty in the oil market, with factors such as weakening global demand, stable U.S. production, and lower refinery throughput contributing to the downward pressure on crude oil prices. The combination of rising inventories and lower refining activity suggests that crude demand from refiners may remain subdued in the near term. However, if refinery utilization rebounds in the coming weeks—particularly with the transition to summer-grade gasoline production—crude inventories could begin to see drawdowns, potentially stabilizing oil prices. The strength of distillate demand may also play a role in balancing the market, as refiners look for profitable margins in diesel production. Investment and Trading Considerations Refinery stocks, such as Phillips 66 ( NYSE:PSX ) and Valero ( NYSE:VLO ), could see margin improvements if refiners adjust operations to favor higher-value products. Meanwhile, crude futures markets may face continued downside pressure unless demand factors provide support. Seasonal refinery maintenance could also have a lasting impact on product balances, keeping certain fuel markets tighter than others. The rise in crude inventories, coupled with lower refinery utilization, highlights a transitional phase in the market. While short-term price pressure persists, the evolving dynamics in fuel production and demand could lead to shifts in market sentiment in the weeks ahead.
EURNZD is currently moving within a rising, expanding channel and has recently posted a new higher high on the 4-hour timeframe, breaking through a key horizontal resistance level. This breakout suggests a potential continuation of the bullish trend, targeting the 1.920 resistance area. An ideal entry would be within the demand zone aligned with the broken structure and supported by the ascending channel’s trendline.
Driving programs to include cryptocurrency into the U.S. financial system, President Donald Trump's goal to become the first crypto president has drawn a lot of criticism
Interactive Brokers has announced that it will offer access to the Ljubljana Stock Exchange. This expansion increases the range of markets available on its platform and allows clients to trade Slovenian equities alongside global financial products. The firm provides trading access to more than 160 markets across the Americas, Europe, and Asia. Slovenian stocks will […]
Google is replacing lead-acid battery backup units with lithium-ion cells, freeing up space for more servers. © 2024 TechCrunch. All rights reserved. For personal use only.
A recurring theme in Europe’s tech world is that the region needs its own Google or Microsoft, and that in this day and age, to be more resilient and independent, it should, could and must build it. Now comes the launch of a new fund to support this initiative. Project Europe — a new fund […] © 2024 TechCrunch. All rights reserved. For personal use only.
Though the Swedish startup has raised over $14 billion, it has been running short on cash recently. © 2024 TechCrunch. All rights reserved. For personal use only.
La Fourche is just seven years old but it has been quite a rollercoaster for the French startup. During this time, the online grocery retailer has gone through a global pandemic, followed by the rise of venture-backed quick-commerce startups that promised grocery deliveries in less than 15 minutes, followed by the implosion of that vertical. […] © 2024 TechCrunch. All rights reserved. For personal use only.
Only a small fraction of developers’ ideas for games ever actually get made. Even ones that make it through the prototype stage often never see the light of day. A newly unearthed 2010 pitch for a Sony game from Japan Studio gives a tiny peak behind the curtain of how developers try to convince a publisher to…Read more...
Dynasty Warriors: Origins is, all told, a pretty straightforward game. Talk to some guys on the overworld map, get into a battle, fight all the soldiers and capture all the bases, rinse and repeat until the game is done. Even the postgame lays a clear path forward for those who want to see and do everything the game…Read more...