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U.S. commercial petroleum stocks declined by 13.4 million barrels last week, representing the largest weekly commercial draw since April.
Rory Johnston highlighted that the draw was driven by crude, diesel, and "other" products, which are largely natural gas liquids (NGLs). Johnston also noted that crude inventories are now below their trailing five-year seasonal lows and are falling at a time they would typically be building.
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Rory Johnston previously observed a bearish divergence between the prompt Brent crude futures price and the associated prompt timespread. He also highlighted when Brent crude fell below $100 per barrel for the first time since a pipeline attack. These earlier developments add context to the current movement in U.S. petroleum inventories.