Highlights
Refineries cut back output and imports were down, making for a big 3.7 million barrel draw in crude oil to 332.4 million barrels in Dec. 11 week. Distillate stocks fell 2.9 million barrels offset in part by a 900,000 barrel build in gasoline. Another offset for prices is another build at the WTI delivery point in Cushing, Oklahoma where crude stocks rose 700,000 barrels to a very swollen 34.1 million barrels to indicate that the supply chain is full. Output of both gasoline and distillate fell as refineries operated at a very slow 80.0 percent of capacity, producing 9.1 million barrels per day of gasoline and 3.7 million of distillates. Crude imports averaged 7.8 million barrels per day in the week, down 365,000 barrels from the prior week and well below the four-week average of 8.3 million barrels. The demand side remains soft, at 9.0 million barrels per day for gasoline and 3.6 million for distillates. Oil rose about $1 in reaction to this report to test $73, but the report points to more of the same: heavy supply and still light demand.