- EIA reported a smaller-than-expected 692 MBbl build in crude stocks last week to 414.4 MMBbls
- Distillate inventories, which include diesel and jet fuel, fell by 1.4 MMBbls to 107.3 MMBbls, their lowest since May 2008
- Distillate stocks have steadily fallen, owing in part to increased demand for U.S. petroleum products overseas following Russia's invasion of Ukraine
- The U.S. is exporting 6.3 MMBbls of refined products daily, up 25% year-on-year
- The US Dollar Index recently rose 0.8 percent, reaching a 20-year high (BBG)
- A stronger dollar is bearish for crude prices or any other dollar-denominated commodities as it requires less units of currency to purchase the same goods
- "With the Fed poised to increase rates by 50 basis points [next week], with the possibility of a 75-basis point increase, it would seem highly unlikely that we have seen the last of new multi-year increases in the dollar," said Robert Yawger, executive director of energy futures at Mizuho Securities
- Continental Resources, Hess, and Matador Resources signaled plans to raise production from U.S. shale basins
- This additional production is minimal on its own, but if other public and private operators follow suit, it might signal that U.S. shale is moving up to alleviate the global crude supply crisis and capitalize on the $100/bbl price
- Exxon Mobil and Chevron to report earnings on April 29