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US Crude Stocks Poised for Another Sharp Draw as SPR Releases Continue, Macquarie Says

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Weekly US crude inventory data from the Energy Information Administration is forecast to show a 7.9-million-barrel draw for the week ending June 5, Macquarie strategists said in a weekly note on Tuesday, following an 8 mmbbls draw the previous week.

Crude runs are projected to rise by about 100,000 barrels per day after a strong increase in the prior week. Crude exports are projected to drop by 500,000 b/d, while imports are projected to edge lower by 700,000 b/d.

"Timing of cargoes remains a source of potential volatility in the weekly crude balance," Macquarie strategists said.

Macquarie projected that domestic supply, which includes production, adjustments, and transfers, rose by 300,000 b/d for the week ended June 5, while stocks in the Strategic Petroleum Reserve decreased by 7.9 million bbls.

On the products front, gasoline inventories are forecast to drop by 1.3 mmbbls, distillate inventories will increase by 100,000 b/d, and a 1.6 mmbbls increase in jet fuel stocks.

Macquarie forecasts the combined implied demand for gasoline, distillates, and jet fuel at about 14.3 mmb/d.

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Commodities

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