According to the latest monthly update from the DOE, the build in commercial crude oil stocks in the U.S. was much stronger than we expected.
The numbers for June show inventories of crude oil at the highest level in over a generation. According to the preliminary weekly numbers we had expected supplies to top out over 355 MMbbls. Instead, supplies actually finished the month over 360 MMbbls, the first such occurrence since 1990. In fact, June’s figure of 362.7 MMbbls rank it the 04th highest June since 1980 and the 13th highest June since the government started tracking supply in 1920!
Meanwhile, this weekend’s Labor Day holiday in Canada and the U.S. marks the end of the holiday driving season. Stocks of gasoline in the U.S. finished June (and thus entered the peak driving season in July and August) at the highest level, 214.8 MMbbls, since 2005 and the 21st highest level since the time series began in 1945.