Weekly US oil inventories jump, imports slip

US crude oil inventories registered another sharp rise during the previous week, although there were some slight signs that market fundamentals were starting to align themselves with the reduced amount of storage capacity left.

"There was little of surprise in the latest report. However, if imports remain weak and US production falls more significantly, we think the rate of increase in stocks could continue to slow in the coming weeks," analysts at Capital Economics said in a research report sent to clients.

According to the US Department of Energy, commercial crude oil inventories in the States jumped by a further 15.0m barrels over the week ending on 17 April to reach 518.6m (consensus: 15.2m barrels).

In parallel, gasoline inventories increased by 1.0m barrels and those of distillates by another 7.9m.

Responding to the lower demand for gasoline, the rate of capacity utilisation at refineries plummeted to a new 12-year low of 67.6%.

Imports slip, domestic output drifts lower

Oil imports also slipped again, by 0.7m barrels a day in the latest week to reach 4.9m b/d.

Over the last four weeks, imports had averaged 5.6m b/d, which was 15% less than during the prior four-week period.

Domestic US oil production also dipped during the latest week, by 0.1m b/d to 12.2m b/d, but remained near its historic highs.

To take note of, the effects of refinery lockdowns, not just in the US, but also in Europe, were rippling across the globe.

In an interview with the Premium Times, Nigerian National Petroleum Corp. managing director, Mele Kyari, said the OPEC member state would be forced to cut output due to country's lack of storage capacity "whether with or without OPEC output cut deal".

Kyari reportedly put Nigeria's oil output at near 2.44m b/d.

That compared to 1.853m b/d as per OPEC's March Monthly Oil Market Report.

Nigeria only had storage worth 1.5 days of output, the Premium Times said, citing IHS Markit estimates.

As of 1800 GMT, June-dated WTI futures were trading 15.92% higher at $13.71 a barrel on ICE.