Expansion of B/w Price Spread in Accumulative Storage of Refined Oil

The U.S. Energy Information Agency (EIA) reported Wednesday (August 21) that U.S. crude oil inventories fell more than expected last week, but refined oil and gasoline inventories both recorded growth. The EIA announced that U.S. crude oil stocks fell by 2.732 million barrels to 437.8 million barrels in the week ending Aug. 16, with a market forecast of 1.89 million barrels. More data showed that Kuxin crude oil stocks in Oklahoma fell by 2.485 million barrels last week, recording a seven-week decline. U.S. refinery stocks increased by 2.61 million barrels, and the market forecast an increase of 584,000 barrels. Gasoline inventories in the United States increased by 312,000 barrels, and the market forecast an increase of 69,000 barrels. U.S. crude oil exports fell 496,000 barrels a day to 7.218 million barrels a day last week, while U.S. crude oil imports increased by 120,000 barrels a day to 2.803 million barrels a day last week. EIA data show that refinery capacity utilization increased by 1.1% to 95.9%. In addition, U.S. domestic crude oil production remained flat at 12.3 million barrels a day last week.

Yesterday EIA showed that crude oil stocks in the United States fell more than expected last week, but refined oil and gasoline stocks both recorded growth. Gasoline stocks should have been depotted during peak demand season but continued to accumulate, indicating weak terminal demand. In recent days, the macro-level is relatively favorable, focusing on the pressure around 62. EFS 2.39. On August 19, we hinted that Brent is expected to be stronger than WTI, and the price gap between BRENT and MEH is expected to expand to above 2, thus driving the expansion of the B/W price gap to drive U.S. crude oil exports. Yesterday, the B/W spreads rebounded from a low of 3.28 on Aug. 19 to 4.57, while the BRENT and MEH spreads rebounded to 2.57 from a low of 0.88 on Aug. 19.