Overview

• U.S. crude inventories fell by 3.17 million barrels in the week ending July 18, while gasoline stocks dropped 1.74 million barrels and distillate supplies rose by 2.93 million barrels.
• Crude exports jumped by 337,000 barrels per day as net imports fell by 740,000 barrels per day, intensifying the weekly draw.
• The Department of Energy reported a 200,000-barrel Strategic Petroleum Reserve loan to ExxonMobil to resolve quality issues at its Baton Rouge refinery.
• Optimism over a U.S.-Japan auto tariff deal and advancing EU tariff talks is easing demand worries ahead of the August 1 deadline.
• Possible U.S. sanctions on Russian oil and a report that Chevron may resume Venezuelan operations are adding to near-term supply uncertainty.