Oil prices are lower this morning on some potentially optimistic comments from Ukraine, after earlier rallying toward $127/bbl as President Biden said his nation would ban the import of Russian crude.
Bloomberg’s Valle notes that “fewer refined-product imports are compounding already tight inventory, particularly along the U.S. East Coast.”
Inventories tumbled across the board according to the latest official DOE data with Cushing stocks down for a 9th straight week…
Distillates inventories registered a 5.23 million barrel drop last week, the biggest decline in about a year, to the lowest level since November 2014.
Cushing stocks continue to drop near operational lows…
Oil prices rebounded modestly on the draws…
Crude production is holding steady for a fifth week at 11.6 million barrels a day despite widespread expectations that shale producers are cranking out barrels spurred by the strong rally in oil prices.