Weekly Crude Build to Offset Gasoline Draw

Commodity strategists at Macquarie Bank are predicting a slight increase in US crude oil inventories, which they believe will balance out the anticipated decline in gasoline stocks.

They estimate a rise of 2.2 million barrels in US crude inventories for the week ending June 7, compared to a 1.2 million barrel increase recorded for the week ending May 31. This indicates a looser overall crude balance than previously expected.

For the current week, the strategists project a minor decrease in refinery crude runs, estimating a drop of 0.2 million barrels per day to around 17.0 million barrels per day.

In terms of net imports, they foresee a notable nominal increase. However, exports are expected to decrease significantly by 1.2 million barrels per day, while imports are also anticipated to drop by 0.3 million barrels per day.

From the implied domestic supply perspective, which encompasses production, adjustments, and transfers, the strategists expect a considerable reduction of 1.0 million barrels per day this week, following a robust performance in the previous week.

Additionally, they are modeling a smaller increase in the Strategic Petroleum Reserve inventory, projecting a rise of 0.7 million barrels for the week.