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
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.
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.
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.
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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.
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.
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
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.
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.
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.
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.