The US Energy Information Administration reported that US commercial crude oil inventories decreased by 3.4M barrels to 445.1M barrels (4% below the five-year average) for the week ending July 5th, this follows a 12.2M barrels drop the previous week. Gasoline inventories increased by 2.0M barrels (1% below the five-year average). Distillate inventories increased by 4.9M barrels (8% below the five-year average). Total commercial petroleum inventories increased by 2.6M barrels. Refineries operated at 95.4% of their operable capacity. Crude oil imports came in at 6.8M bpd, an increase of 214K bpd as compared to the previous week. Total motor gasoline imports averaged 768K bpd, and distillate fuel imports averaged 139K bpd.

The Labor Department reported the consumer price index declines (-0.1%) this followed an unchanged reading in May, and is the first decline since March 2020. The all items index has increased (+3.0%) over the last 12 months, a slowing from (+3.3%) the previous month. The shelter index increased (+0.2%), after four consecutive months at (+0.4%). The food index increased (+0.2%), while the food away from home index rose (+0.4%). Offsetting the increases was a (-2.0%) decrease in the energy index, the gasoline index was a primary contributor dropping (-3.8%). Core CPI inflation which excludes food and energy increased (+0.1%) in June, after rising (+0.2%) in May. The annual rate of core CPI inflation increased (+3.3%) as compared to (+3.4%) the previous month, this was the smallest 12-month increase since April 2021. Other indexes with significant increases over the last year include motor vehicle insurance (+19.5%), medical care (+3.3%), personal care (+3.2%), and recreation (+1.3%).

The Labor Department reported that the producer price index for final demand, which measures the prices that producers pay for goods and services, increased by a seasonally adjusted (+0.2%) in June, following an upward revision to (0.0%) in May. The index for final demand services increased (+0.6%), with most of the increase attributable to a (+1.9%) bump in margins for final demand trade services. The index for final demand goods decreased (-0.5%). Nearly 60% of the decrease in final demand goods was driven by a (-5.8%) drop in gasoline prices. Excluding food, energy and trade services, core PPI was unchanged, following an upwardly revised (+0.2%) in May. Year over year the PPI moved up (+2.6%), the largest advance since (+2.7%) for the 12 months ending March 2023. Core PPI inflation moved up (+3.1%) from an upwardly revised (+3.3%) the previous month.