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US Distillate Inventories and Crude Oil Price Forecasts

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US distillate inventories 

On June 14, 2017, the EIA (U.S. Energy Information Administration) released its weekly petroleum status report. It reported that US distillate inventories rose by 0.3 MMbbls (million barrels) to 151.4 MMbbls on June 2–9, 2017. Inventories rose for the third straight week.

The rise in distillate inventories pressured diesel futures on June 14, 2017. Diesel futures fell 2.6% to $1.410 per gallon on June 14, 2017. US crude oil (BNO) (SCO) (XES) prices fell on the same day.

Lower crude oil and diesel prices have a negative impact on US refiners and crude oil producers’ earnings like Western Refining (WNR), Marathon Petroleum (MPC), QEP Resources (QEP), and PDC Energy (PDCE).

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Crude oil price forecasts 

Consulting company FGE thinks that crude oil prices could fall to $30 per barrel if OPEC doesn’t make any deeper cuts its production as part of the production cut deal. The rise in crude oil production from the US, Canada, Brazil, Libya, and Nigeria, and Iran could pressure oil prices. Slowing crude oil demand from China could also weigh on oil prices.

Key moving averages, bearish fundamentals, and a bearish trend suggest more pain for prices. If crude oil prices stay below $45 per barrel for the next three days, we could see another fall in oil prices. For more on crude oil’s price forecast, read What Major Banks Forecast for US and Brent Crude Oil. 

Read Latest on Crude Oil Prices: Fed’s Meeting and Nigeria’s Supplies and Looking Ahead: What to Expect from Crude Oil Futures for more on crude oil.

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