Macquarie expects US crude stock build of 7.2 million barrels
Macquarie strategists projected an increase in U.S. crude inventories by 7.2 million barrels for the week ending February 7, signaling a substantial build in stockpiles.
The forecast is a slight adjustment from an earlier estimate of an 8.0 million barrel build and follows an 8.7 million barrel increase reported for the week ending January 31.
The analysis by Macquarie indicates a minor decrease in refinery crude runs, down by 0.1 million barrels per day (MBD). In terms of net imports, both exports and imports are expected to be significantly lower, with exports decreasing by 0.9 MBD and imports by 1.2 MBD.
The timing of cargo deliveries and foggy conditions along the Texas coast are cited as potential variables that could influence this week's crude balance.
Macquarie's outlook also suggests a nominal decline in domestic supply, which includes production, adjustments, and transfers, by 0.1 MBD. Additionally, they predict a small uptick in the Strategic Petroleum Reserve (SPR) inventory, with an increase of 0.2 million barrels over the week.
On the product side, the forecast anticipates inventory builds for gasoline and jet fuel, with increases of 0.6 million barrels and 0.7 million barrels, respectively. Conversely, a draw of 2.1 million barrels is expected for distillate stocks.
The implied demand for these three products is estimated to be around 13.9 MBD for the week ending February 7.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.