Energy Preview: Crude Rises On Drop In US Inventories

WTI Crude Oil futures recovered following a drop in US Crude oil inventories and supportive equities. The counter currently trades at $ 65.50 per barrel-down 0.36% on the day. MCX Crude oil ended at Rs 4504 per barrel- up nearly 2% on the day. US crude oil inventories decreased in the week ending June 15, the U.S. Energy Information Administration (EIA) said in a report on Wednesday. According to the Weekly Petroleum Status Report, US commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, decreased by 5.9 million barrels during the week ending June 15. For the week ending June 8, the EIA had reported a draw of 4.1 million barrels. At 426.5 million barrels, U.S. crude oil inventories are about 2% below the five year average for this time of year.

US crude oil refinery inputs averaged about 17.7 million barrels per day during the week ending June 15, which was 196,000 barrels per day more than the previous weeks average. Total motor gasoline inventories increased by 3.3 million barrels last week and are about 6% above the five-year range. Finished gasoline and blending components inventories both increased last week. Over the past four weeks, motor gasoline product supplied averaged 9.5 million barrels per day, down by 0.9% from the same period last year.

Distillate fuel inventories increased by 2.7 million barrels last week and are about 14% below the five-year average for this time of year. Distillate fuel product supplied averaged 4.0 million barrels per day more than the past four weeks, up by 2% from the same period last year. Jet fuel product supplied was down 2.1% compared with the same four-week period last year.