Crude Oil futures were flat in Asia’s mid-morning session on unaltered fundamentals on June 24. The US Energy Information Administration reports a drop in US crude stocks matching earlier data from the American Petroleum Institute. US crude stockpiles fell 7.61 million barrels to 459.06 million barrels in the week ending June 18, according to EIA data posted late June 23.
On the other hand, the draw did not spark a rise in Asian trading because it provided no new information, only confirming the American Petroleum Institute’s earlier estimate of a 7.2 million-barrel appeal. Simultaneously, distillate stockpiles increased by 1.75 million barrels to 137.95 million barrels, indicating a more bearish build than the API-estimated build of 992,000 barrels.
On the other hand, the EIA statistics differed from the API’s estimate of the change in gasoline stockpiles in the United States. In the week ending June 18, the EIA reported an unexpected drop in US gasoline inventory from 2.93 million barrels to 240.05 million barrels. As a result, it was more positive than the API data, which showed a 959,000-barrel increase in gasoline stockpiles during the same period.
The EIA data supports the demand recovery thesis that has been driving Oil prices higher recently. In the week ending June 18, total products supplied, the EIA proxy for demand, increased by nearly 1% to 20.75 million b/d. The closely watched gasoline products gave metric increased by the same amount to 9.44 million b/d, testing highs last seen in February 2020, just before the first wave of pandemic lockdowns.
The increase in fuel demand is due to more minor limitations on mobility, and growing immunization rates as more Americans take to the road. In the week ending June 18, Apple Mobility data revealed that US driving activity rose six percentage points to a new high of roughly 164 percent of the index’s January 2020 baseline.