Oil prices rose today as crude stocks declined again and refinery utilization rose to the highest level since pre-pandemic. US crude inventories declined by 1MM/bbls last week, compared to a forecasted draw of 740K/ bbls. Gasoline inventories decreased by 500K/bbls and distillate inventories increased by 1.7MM/bbls. Refined product exports were more than 6.2MM/bpd, which is in part driving the higher refinery utilization rates, along with expected higher gasoline demand in the summer driving season. Utilization came in at 93.2% last week, the highest since December 2019. “We’re not seeing any elasticity in refined products demand,” said Gary Cunningham, director of market research at Tradition Energy. “People are still going to drive; people are still driving.” WTI traded up $.56 or .51% to close at $110.33. Brent traded up $.47 or .41% to close at $114.03.

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