U.S. distillate inventories fell significantly last week International oil prices rose on October 13

International oil prices rose
on the 13th due to the significant decline in distillate inventories in the United States last week and the overall rise in risk asset prices.

As of the close of the day, light crude oil futures for November delivery rose $1.
84, or 2.
11%,
to settle at $89.
11 a barrel on the New York Mercantile Exchange.
London Brent crude for December delivery rose $2.
12, or 2.
29 percent
, to settle at $94.
57 a barrel.

U.
S.
commercial crude oil inventories were 439.
1 million barrels last week, up 9.
9 million barrels month-on-month, an increase greater than market expectations
, according to data released by the U.
S.
Energy Information Administration on the same day.
Over the same period, U.
S.
gasoline inventories increased by 2 million barrels month-on-month, distillate inventories fell by 4.
9 million barrels month-on-month and propane and propylene inventories increased by 1.
1 million barrels
month-on-month.
Including commercial crude, refined products, propane and propylene, U.
S.
commercial oil inventories rose by 8 million barrels
month-on-month last week.

The U.
S.
Strategic Crude Reserve was 408 million barrels last week, down 7.
69 million barrels month-on-month, commercial crude oil inventories in Cushing were 25.
6 million barrels last week, down 300,000 barrels month-on-month, and U.
S.
crude oil production averaged 11.
9 million barrels per day last week, down 100,000 barrels
month-on-month.

The data also showed that the average daily crude oil processing volume of US refineries was 15.
7 million barrels last week, down 278,000 barrels from the previous week; the average operating rate of US refineries last week was 89.
9%, significantly lower than the previous week's 91.
3%; U.
S.
net crude imports averaged 3.
191 million barrels per day last week, a sharp increase of 1.
795 million barrels
month-on-month.

Phil Flynn, senior market analyst at Price Futures Group, said on the 13th that as the release of the US strategic crude oil reserve is nearing the end, the supply of crude oil in the next few months will be significantly reduced, which will eventually lead to higher
oil prices.
In the short term, concerns about inflation and Fed rate hikes have held back oil prices
.

Flynn believes the most troubling thing about the day's inventory data is distillate inventory levels, as winter is approaching and distillate demand will increase
.

The October oil market report released by the International Energy Agency on the 13th said that the high oil prices brought about by OPEC+ production cuts have intensified concerns about market volatility and energy security
.
Compared to its September report, the IEA lowered its forecasts for average global oil demand growth by 60,000 barrels per day in 2022 and 470,000 barrels per day in 2023, respectively, by 1.
9 million barrels per day this year and 1.
7 million barrels
per day next year.

The IEA also said the global refining industry was reacting to slowing demand and falling refining margins, with refining processing volumes falling below expectations
in the third quarter of this year.
In light of the downward revision of oil demand and OPEC+ production cuts, the global average daily crude oil processing volume in the fourth quarter of this year and 2023 will be lowered by 340,000 barrels and 720,000 barrels
, respectively.

PVM Oil Colleague analyst Tamas Varga said the prospects for continued growth in oil demand are deteriorating
due to persistent inflationary pressures, the withdrawal of quantitative easing monetary policy, the continued increase in borrowing costs, the strength of the US dollar and pandemic-related control measures.