Precious Metals Preview: EIA Reports Massive Draw

The US Energy Information Administration EIA reported a draw of 1.4 million barrels for the week to May 11. This follows a combined inventory build of 8.4 million barrels in the prior two weeks. The EIA said refineries processed 16.6 million barrels of crude daily, with gasoline production averaging 10.5 million barrels, compared with 9.9 million bpd a week earlier. Distillate production stood at 5.0 million barrels daily last week, unchanged on the week. Gasoline inventories were down by 3.8 million barrels last week, after a total 2-million-barrel build in the prior 14 days. Distillate inventories decreased by 0.1 million barrels, after a combined 7.7-million-barrel draw over the prior two weeks.