US crude stocks see largest draw since 2019 as net imports reach all-time low

US crude stocks saw their largest one-week decline in over three years in the week to Nov. 25 as net imports reached a record low, US Energy Information Administration data showed Nov. 30.

US commercial crude stocks plunged 12.58 million barrels in the week ended Nov. 25, EIA data showed, leaving them at a 13-week low 419.08 million barrels and 7.8% behind the five-year average for this time of year. It was the biggest one-week draw in commercial stocks since the week ended June 21, 2019, when inventories drew down 12.79 million barrels.

A further 1.4 million barrels drained from the nation’s Strategic Petroleum Reserve, putting total US crude inventories at a 21-year low 808.2 million barrels.

The draw was concentrated on the US Gulf Coast, where stocks fell 11 million barrels — the largest ever reported regional decline. In contrast, inventories at the NYMEX delivery point of Cushing, Oklahoma, fell just 420,000 barrels.

NYMEX January WTI settled $2.35 higher at $80.55/b, and ICE January Brent climbed $2.40 to finish at $85.43/b.

The crude draw was largely the result of divergent imports and exports. Total net crude imports fell 2.5 million b/d to minus 3.83 million b/d, an all-time low.

Total outbound crude volumes climbed 710,000 b/d to 4.95 million b/d, while imports fell 1.03 million b/d to 6.04 million b/d.

Domestic refinery crude demand saw a seasonal rise of around 230,000 b/d, climbing to a four-month high 16.64 million b/d. Total utilization, meanwhile, jumped 1.3 percentage points to 95.2% of capacity and was the strongest since August 2019.

Higher refinery runs contributed to a third straight week of builds in key refined product inventories. Total gasoline stocks moved 2.77 million barrels higher to 213.77 million barrels and distillate stocks were up 3.55 million barrels on the week at 112.65 million barrels.

NYMEX December RBOB rallied 8.64 cents to settle at $2.4185/gal, and December ULSD climbed 6.70 cents to $3.3629/gal.

Atlantic Coast gasoline stocks rose 2.13 million barrels to 49.2 million barrels. The USAC region is bracing for a surge of gasoline imports in the coming weeks amid favorable trans-Atlantic economics and the return of shipments from Irving Oil’s 320,000 b/d refinery in Saint John, New Brunswick.

Imports are forecast to reach 451,000 in the week to Dec. 2 and 520,000 b/d in the week to Dec. 9, according to S&P Global Commodity Insights’ Commodities at Sea vessel trade-flow tracker. The four-week moving average of USAC gasoline imports climbed to 449,000 b/d in the week ended Nov. 25, EIA data showed.

Weaker demand also contributed to the gasoline and distillate builds. Total product supplied for all refined products declined around 1% to a seven-week low 19.72 million b/d. Gasoline demand was around 5% below normal at 8.32 million b/d, while distillate demand was nearly 4% behind the five-year average at 3.66 million b/d.
Source: Platts