Tight US Gasoline Supplies Buttress Crude Oil Prices

26 May 2022 , 01:27 PM

WTI Crude oil futures are managing to hold on just above $110 per barrel amid sustained hopes of good demand in the US driving season. Rising US Crude oil imports and tight gasoline inventories are keeping the sentiments well supported. The EIA reported yesterday that US crude oil imports averaged 6.5 million barrels per day last week, down by 82,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 6.4 million barrels per day, 8.6% more than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 847,000 barrels per day, and distillate fuel imports averaged 80,000 barrels per day. Meanwhile, the US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 1.0 million barrels from the previous week. At 419.8 million barrels, US crude oil inventories are about 14% below the five year average for this time of year. Total motor gasoline inventories decreased by 0.5 million barrels last week and are about 8% below the five year average for this time of year. This drop in gasoline stockpiles is critical in the sense that consumption of the fuel seems to be holding up well despite the recent surge in prices to record highs in US.Powered by Commodity Insights