Highlights
Stocks of crude oil fell a steep 5.9 million barrels in the July 4 week to 293.9 million with stocks at the key Cushing, Oklahoma refinery down 0.5 million to 20.4 million barrels. Crude stocks may be down but not stocks of refined products. Stocks of gasoline, reflecting weak demand, rose 0.9 million barrels in the week to 211.8 million. Demand for gasoline, hit by higher prices, is down 2.1 percent year-on-year vs. a 3.4 percent rise in gasoline stocks. Distillate stocks jumped 1.8 million barrels to 122.5 million with jet fuel demand down 2.2 percent. Weak demand is making for caution among refineries which continue to operate at only moderate levels, at 89.2 percent in the latest week. The results are mixed but the size of the crude drawdown could very well feed a rebound in oil prices.