U.S. Commercial Crude Stocks Swell to All-Time High | Weekly News Update

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U.S. commercial crude stocks swell to all-time high as refinery demand sputters

US commercial crude stocks notched a fresh all-time high last week amid still-weak refinery demand and flagging exports, US Energy Information Administration data showed June 17.

Refinery net crude inputs were up 120,000 barrels per day on the week at 13.6 million barrels per day, but despite climbing for five consecutive weeks inputs remain nearly 20 percent behind the five-year average. Crude inputs were as much as 25 percent behind the five-year average in early May, but rising refinery demand has only slightly outpaced the typical late-spring uptick, leaving runs well behind normal.

Nationwide distillate inventories saw their first weekly decline since late March, falling 1.36 million barrels to 174.47 million barrels last week, as demand climbed nearly 8 percent on the week to 3.56 million barrels per day. Rising demand has contributed to an improvement in cracks for both jet and ultra-low sulfur diesel. Consequently, refiners have for the most part stopped using jet fuel to blend into with ULSD as seen earlier in the year. This blending activity had been a major contributor to the massive build in distillate stocks seen in recent weeks.

 

Massive ‘Green’ Highway Bill Heads to House Floor

The House Committee on Transportation and Infrastructure approved the Investing in a New Vision for the Environment and Surface Transportation in America (INVEST in America) Act by a party-line vote of 35 to 25. This bill will put an emphasis on tackling the massive maintenance needs and build smarter, safer infrastructure, while putting the U.S. on a path toward zero emissions from the transportation sector.

The bill is the largest component of a larger $1.5 trillion proposal known as the Moving Forward Act, which also promises funding for drinking water, broadband, clean energy projects, low-income schools, public housing, the postal service, and more.

 

Top Energy Stories

WSJ: Oil Demand Is Headed for Record Rebound in 2021

The coronavirus pandemic will hammer global growth and oil demand this year, but supply cuts from producers and a record rebound in demand next year will help to rebalance the oil market, the International Energy Agency said.

REUTERS: Oil boosted by OPEC+ cuts even as virus weighs on market

Oil prices rose on Friday but pulled back sharply from early highs on concerns that continued spread of the novel coronavirus could stall the United States’ economic rebound.

WSJ: OPEC Sticks to Global Oil-Demand Forecast Despite Signs of Rebound

The global oil market is slowly starting to rebalance thanks to production cuts and relaxing coronavirus lockdowns, but the industry is still swimming in excess supply, the Organization of the Petroleum Exporting Countries said Wednesday.

 

Top Freight Transportation Stories

WSJ: Peak Shipping Season Runs Aground as Ocean Lines Pull Capacity

Ocean container lines are bracing for muted demand during the usual peak shipping season heading into the fall, with supply chains still rattled by the coronavirus pandemic and retailers in the U.S. and Europe reining in restocking plans.

SCDIVE: CH Robinson flexes muscle to wrangle PPE supply chains

Personal protective equipment supply chains face myriad challenges, as depressed airfreight capacity, turbulent and changeable compliance processes, and constant concern about counterfeits make successfully procuring these essential supplies difficult at every step.

CCJ: California law that blocks fleets from using owner-operators paused at least through late 2020

California’s A.B. 5 law, which effectively prohibits fleets from contracting with owner-operator drivers, is still on a temporary court-ordered hold, and that short-term pause will remain in effect least through late 2020, if not longer.

 

Top Economic Stories

AP: Persistently high layoffs suggest a slow US economic rebound

Three months after the viral outbreak shut down businesses across the country, U.S. employers are still shedding jobs at a heavy rate, a trend that points to a slow and prolonged recovery from the recession.

REUTERS: Mexico freezes bank accounts of entities sanctioned by U.S.

The Mexican government’s financial crime department has frozen the bank accounts of companies and people blacklisted by the United States under accusations of having evaded the sanction regime imposed on Venezuela, its chief said on Friday.

REUTERS: U.S. shares retreat on renewed pandemic fears, safe-havens rise

Demand for safe havens rose and global equity markets turned south on Friday after Apple Inc said it would temporarily shut 11 U.S. stores as coronavirus cases continue to rise, rekindling fears of a deadly second wave of the pandemic.

BLOOMBERG: Cases Climb in the Americas; German Outbreaks Grow

Germany’s infection rate rose for a third day, lifted by local outbreaks including many at a slaughterhouse. Brazil’s death toll from the coronavirus surpassed 50,000, while Peru’s more than 51,000 cases exceeded those of Spain. Meanwhile, the Americas account for almost two-thirds of new cases reported by the World Health Organization on Sunday.

 

This weekly publication is designed to highlight relevant industry news to provide professionals in the transportation, supply chain, and energy sectors with up-to-date information in a rapidly changing marketplace. This update is purely a compilation of industry news and as such, does not necessarily reflect the opinion of Breakthrough. We do not warrant or guarantee accuracy or completeness of information. For additional information, please contact us at info@breakthroughfuel.com.

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