Oil Futures Rally as US Crude Output Slips, Exports Jump
5/15 10:55 AM
Oil Futures Rally as US Crude Output Slips, Exports Jump CRANBURY, N.J. (DTN) -- New York Mercantile Exchange nearest delivered oil futures rallied following the midmorning release of weekly supply statistics from the Energy Information Administration showing a second weekly decline in U.S. crude production while exports jumped and inventory increased less than reported late Tuesday by the American Petroleum Institute. EIA data showed U.S. crude production declined 100,000 bpd to 12.1 million bpd during the week-ended May 10 while down 200,000 bpd during the previous two weeks after reaching a record high of 12.3 million bpd in late April. The drop in output aligns with lower operating rigs in the United States reported by Baker Hughes, which showed the U.S. oil rig count at an 805 13-1/2 month low as of May 10. Commercial crude inventory in the United States increased 5.4 million bbl to a 472 million bbl 20-month high during the week profiled, although less than an API reported 8.6 million bbl build. Moreover, 1.8 million bbl of supply was drawn down from the Strategic Petroleum Reserve following a 900,000 bbl decline in the preceding week, with SPR crude at 646 million bbl. U.S. crude exports jumped 1.025 million bpd to 3.347 million bpd during the week-ended May 10, an eight-week high. U.S. gasoline exports also gained sharply during the period, up 294,000 bpd to a 785,000 bpd nine-week high. Gasoline inventory dropped an unexpected 1.1 million bbl to 225 million bbl, a six-month low, contrasting with a 567,000 bbl build reported by API. There were bearish data points, including a 723,000 bpd drop in implied gasoline demand from a more than eight-month high to 9.148 million bpd, while down 383,000 bpd against the same week in 2018. Total U.S. crude and products commercial supply increased 14.6 million bbl or 1.2% to a 1.2703 billion bbl 19-week high. In late morning trading, NYMEX June West Texas Intermediate futures were up $0.25 near $62 bbl, with June RBOB futures nearly 4cts higher at $2.0167 gallon. NYMEX June ULSD futures were up 2.9cts near $2.0880 gallon. Brian L. Milne, 1.609.371.3328, brian.milne@dtn.com, www.dtn.com. (c) 2019 DTN. All rights reserved.