As we’ve been saying for a while now, as refining inputs increased to more normal levels, inventories would fall…
Wednesday, the data showed US crude inventory fell 12.79mil bbl (the largest decline in almost 3 yrs). Expectations were for a 2.8M bbl draw. While refining inputs are rising, they have stayed relatively low historically. Gasoline inventories are falling with summer demand. We currently remain ~25mil BBL above the 5yr avg. US crude inventory trend, but not for long.
Don't forget, Exxon (XOM) is not back online with its 600,000bpd refinery; when that starts up, inventories