Oil Futures Selloff after EIA reports across Board Builds
WASHINGTON, D.C. (DTN) --- Nearest delivered oil futures on the New York
Mercantile Exchange tumbled to one-week lows following the release of bearish
supply data from the Energy Information Administration showing across the board
builds in key U.S. oil inventories while domestic crude production increased
100,000 bpd on the week.
EIA reported a 4.7 million bbl build in commercial crude stocks for the
week-ended May 17 which follows a 5.4 million bbl increase week prior, well
above a 2.4 million bbl increase reported late Tuesday by the American
Petroleum Institute, and contrasting with market expectations for a 2 million
bbl draw. The weekly build pushed commercial stocks to a nearly 22-month high
at 476.8 million bbl, and to a year-on-year surplus at 39.7 million bbl or
Part of the supply increase was due to a 1.1 million bbl draw from the
Strategic Petroleum Reserve, while the U.S. refinery run rate fell 0.6% to
89.9%. EIA also reported U.S. crude production increased 100,000 bpd to 12.2
million bpd, holding below a record 12.3 million bpd registered in late April,
and following a re-benchmarking of U.S. crude output earlier this month that
lowered the production rate by 200,000 bpd.
EIA also reported an unexpected 3.7 million bbl increase in gasoline
inventories to 228.7 million bbl for last week compared with market estimates
stocks would show a 1 million bbl draw, and an API reported 350,000 bbl build.
The build reduced a year-on-year deficit by 1.8 million bbl to 5.2 million bbl
The data was also bearish for distillate fuels, with EIA reporting a 307,000
bpd decline in implied demand to 3.787 million bpd, a six-week low, and stocks
increased 800,000 bbl to a four-week high at 126.4 million bbl. The market
expected a 1 million bbl draw, and API reported a 237,000 bbl decline for the
At 11:20 AM ET, oil futures were mostly trading near their intraday lows,
with NYMEX July West Texas Intermediate down $1.30 near $61.80 bbl. July Brent
futures on the Intercontinental Exchange was down $1.05 near $71.15 bbl. NYMEX
June RBOB futures were 2.45cts lower near $1.9950 gallon, while June ULSD
futures dropped back 3.05cts to near $2.0490 gallon.
Brian L. Milne, 1.609.371.3328, email@example.com, www.dtn.com. (c) 2019
DTN. All rights reserved.