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As per EIA weekly report ending on 12th March 2021, U.S. crude oil refinery inputs averaged at 13.4 million barrels per day, which has been 1.1 million barrels more compared to previous week's average. Currently refineries has operated at 76.1% of their operable capacity during last week, higher compared to the last week's capacity of 68.6%. Gasoline production increased during the last week, averaging 8.9 million barrels per day.

Correspondingly, the distillate fuel production has inclined during the last week, averaging at 2.9 million bpd. U.S. crude oil imports are down by 1.7 million barrels to 6.3 million barrels per day during last week. Over the past four weeks, crude oil imports averaged about 5.7 million barrels per day, less by 12.8% in compared to four-week period of the last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 605,000 barrels per day, and distillate fuel imports averaged 321,000 barrels per day.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) reported at 500.8 million barrels, increased by 2.4 million barrels compared to the previous week's inventories of 498.4 million barrels. At 500.8 million barrels, U.S. crude oil inventories are at the five year average for this time of the year. The total motor gasoline inventories during last week has increased by 0.5 million, to a total of 232.1 million barrels and are about 1% above the five year range.

Finished gasoline inventories increased while blending components decreased during the last week. Correspondingly, distillate fuel inventories has increased by 0.3 million barrels during last week to 137.7 million barrels and are 7% above than the five year average for this time of the year. Propane/propylene inventories decreased by 0.2 million barrels last week to atotal of 41.0 million barrels and are 17% below the five year average during this time of the year.

Outlook: For the week ahead, we are expecting Global and MCX Crude prices to witness with volatility as the OPEC member countries continue to maintain their supply cuts. Higher yields of the developed economies could strengthen the US dollar index and lower the global crude demand _ with reduced imports. Moreover, increased refinery usage in the United States and has concerns regarding the supply issues though the weather has started to settle down and industrial activities have started to pick up once again. Upcoming spring season in April is expected to push the demand in various sectors in the United States with estimating of higher demand for gasoline oil. Until then, we can witness some decline in Global Crude prices.

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