EIA Digest: US gasoline stocks hit year-to-date low as refiners tilt output towards middle distillates

US crude stocks draw by 1.7Mb on higher refinery intake, while refiners continue to shun gasoline output, pushing stocks to a fresh year-to-date low while gasoil/diesel, jet/kero, and fuel oil inventories build.

Market & Trading Calls:

Crude stocks were down by 1.7Mb w/w, settling some 12.5Mb below the 5-year range
Crude intake was up by +100kbd w/w, trending some 200kbd above the multi-year range
Gasoline stocks shed 1.5Mb w/w, reaching a new year-to-date low, falling 8Mb below the 5-year range

US crude stocks were down by 1.7Mb in today’s weekly EIA data release, trending some 12.5Mb below the 5-year range. At the same time, nationwide crude intake added 100kbd over the week ending 10 July (+200kbd vs the multi-year range).

Refiners continue to shun gasoline output in relative terms, with stocks reaching a new year-to-date low in today’s print (-1.5Mb w/w, settling 8Mb below vs the 5-year range) and gasoline production (-100kbd w/w) still undershooting seasonal norms, despite elevated crude intake.

By contrast, gasoil/diesel stocks increased by almost 4.5Mb, jet/kero stocks increased by 850kb, while fuel oil stocks were up by roughly the same amount, all w/w. Production figures and yields are exceeding seasonal norms for all of these products, which is especially true for jet/kero, where today’s figures continue to be close to all-time highs, with output also not hampered by elevated RIN prices (as opposed to road fuels).