The Energy Information Administration said U.S. crude inventories fell by 3.4 million barrels in the week ended May 13, while gasoline stocks fell 4.8 million barrels and distillate supplies rose by 1.2 million barrels. Analysts surveyed by S&P Global Commodity Insights had expected a 2.1 million barrel rise in oil inventories, while gasoline was expected to slip 100,000 barrels and distillates were forecast to drop by 1 million barrels.
The American Petroleum Institute, an industry trade group, reported late Tuesday that U.S. crude-oil inventories fell 2.4 million barrels last week, while gasoline stocks fell by 5.1 million barrels, according to a source. Distillate inventories were seen up 1 million barrels.
Stronger refining was drawing crude, however optimism over China possibly ending lockdowns was being tempered, leading to lower expectations on demand. Additionally expectations of the Fed intervening to reduce demand also weighed on expectations.
It is also expected any end to the conflict in Ukraine could lead to Russian refineries reentering the market, and that would lessen the demand for refined products, filtering back to crude. So as that conflict progresses toward an endpoint, forward looking investors will be factoring in any effects from that.
