The US Energy Information Administration reported that US commercial crude oil inventories increased by 5.9M barrels to 445.6M barrels (slightly above the five-year average) for the week ending August 4th. Gasoline inventories increased by 2.7M barrels (7% below the five-year average), and distillate inventories increased by 1.7M barrels (17% below the five-year average). Total commercial petroleum inventories increased by 7.1M barrels. Crude oil refinery inputs averaged 16.6M barrels per day, a slight decrease of 62K barrels per day as compared to the previous week’s average. Refineries operated at 93.8% of their operable capacity, as gasoline production increased to an average of 9.9M barrels per day and distillate fuel production increased to an average 4.9M barrels per day. Crude oil imports came in at 6.7M barrels per day, an increase of 14K barrels per day as compared to the previous week. Crude oil imports averaged about 6.7M barrels per day over the last four weeks, 2.7% more than the same period last year. Total motor gasoline imports averaged 684K barrels per day, and distillate fuel imports averaged 65K barrels per day.

The U.S. Bureau of Labor Statistics reported the consumer price index increased (+0.2%) in July after readings of (+0.2%), (+0.1%), and (+0.4%) over the previous months. The all items index increases (+3.2%) for the 12 months ending July, after readings of (+3.0%), (+4.0%), and (+4.9%) over the previous months. The index for shelter (+0.4%) was the largest contributor to the monthly all items increase, accounting for 90% of the increase, followed by an increase in the index for motor vehicle insurance (+2.0%). The food index increased (+0.2%) in July after increasing (0.1%) in June, (+0.2%) in May, and remaining unchanged in March and April. The index for energy increased (+0.1%) in July, with increases in the indexes in gasoline (+0.2%), natural gas (+2.0%), and fuel oil (+3.0%) offset by a decrease in electricity (-0.7%). The energy index has decreased (-12.5%) over the past 12 months. Core CPI inflation which excludes food and energy increased (+0.2%) in July, and follows (+0.2%) in June, and (+0.4%) reading for the previous three months. The annual rate of core CPI inflation is now at (+4.7%), as compared to (+4.8%), (+5.3%), and (+5.5%) over the previous months. The shelter index increased (+7.7%) year over year, accounting for two thirds of the total increase in Core CPI. Other indexes with significant increases over the last year include motor vehicle insurance (+17.8%), recreation (+4.1%), new vehicles (+3.5%), and household furnishings and operations (+2.9%).

The U.S. Bureau of Labor Statistics reported the producer price index for final demand reported up a seasonally adjusted (+0.3%) in July, this follows (+0.0%), (-0.3%), (+0.2%) readings the previous months. The PPI is seen as a bellwether for inflation as it measures what suppliers are charging businesses. The PPI index accelerated to an annualized (+0.8%) in July, this follows (+0.2%), (+1.1%), and (+2.2%) readings for the prior three months. Much of the rise in July’s final demand prices was attributed to a (+0.5%) increase in the index for final demand services, this is largest rise since in August 2022. A (+7.6%) increase in the index for portfolio management accounted for 40% of the July increase in prices for final demand services. The indexes for machinery and vehicle wholesaling; outpatient care; chemicals and allied products wholesaling; securities brokerage, dealing, investment advice, and related services; and transportation of passengers all saw increases. The prices for final demand goods increased (+0.1%). Much of the July final demand goods increase was attributed to a (+0.5%) jump in the index for final demand foods. Excluding food, energy, and trade services, the so-called core PPI increased (+0.2%) in July, the largest increase since February. The core PPI held at an annualized (+2.7%) in July, this follows (+2.7%), (+2.9%), and (+3.3%) readings for the prior three months. The high-water mark was set in March 2022 at (+7.1%).