CITIC Futures: U.S. inventory drawdown accelerates, holiday risks remain high

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EIA data shows that U.S. inventory drawdowns are accelerating. On the week of April 24, 2024, the U.S. Strategic Petroleum Reserve (SPR) decreased by 7.12M barrels, while commercial crude oil inventories decreased by 6.23M barrels, mainly due to a net increase in crude exports of 1.97M barrels per day, with weekly exports hitting a new high. Refinery utilization rates rebounded from 89.1% to 89.6%, but the acceleration of gasoline and diesel drawdowns, along with increased net exports of petroleum products, are also primary reasons for the inventory decline. Overall, U.S. crude oil and petroleum product inventories are accelerating their drawdowns, further confirming the tight global supply situation. Currently, the continued low traffic through the Strait of Hormuz remains difficult to disprove. As negotiations are repeatedly postponed and Iranian exports face reductions, supply shortages persist. The pace is mainly influenced by Middle Eastern geopolitical tensions. As holidays approach, risk control should be emphasized. (CITIC Futures)

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