US Crude Storage Outlook - Build, But It's All About Product Demand

For the week ending Oct 18, we have a crude build of 5.75 million bbls, including the SPR build of 0.7 million bbls.

For the week ending Oct 18, we have a crude build of 5.75 million bbls, including the SPR build of 0.7 million bbls. On the surface, this crude build will be viewed bearishly relative to the 5-year average build of 1.1 million bbls. But given the low levels of US commercial crude storage, we think the market is more fixated on product storage and product demand over crude.

As you can see, even with this crude build, US commercial crude storage remains near the 5-year lows.