DOE Quick Takes: Significant Crude Draw; Product Demand Remains Resilient

Research evidence excerpt

DOE Quick Takes: Significant Crude Draw; Product Demand Remains Resilient

May 20, 2026 | 13:42 ET~

Oil & Gas Oil & Gas

Randy Ollenberger Analyst

randy.ollenberger@bmo.com (403) 515-1502

Tariq Saad, CFA Analyst

DOE Quick Takes: Significant Crude Draw; Product tariq.saad@bmo.com (403) 515-1519

AnalystDemand Remains Resilient Jeremy McCrea, CFA

jeremy.mccrea@bmo.com (403) 355-1444

Bottom Line: David Lee, CFA Senior Associate

This week's DOE report leaned bullish, supported by a sizable crude draw and continued David6.lee@bmo.com (403) 355-1451

SPR releases. The crude draw reflected a large reversal in the "supply adjustment" Legal Entity: BMO Nesbitt Burns Inc.

factor and slightly lower domestic production. The SPR draws continued to increase

with cumulative draws of ~41 mmbbl since unwinds began in mid-March. Despite

elevated prices, implied gasoline and distillate demand remain resilient tracking closely

with 2025 levels while both inventories remain below the seasonal range.

Key Points

Sizable crude draw. The DOE reported a crude draw of 7.86 mmbbl, well above

consensus expectations for a 2.82 mmbbl draw but below the API-reported 9.10 mmbbl

draw. The SPR posted a material 9.92 mmbbl decline, as draws continued to increase

w/w. Cumulative draws have totaled ~41.27 mmbbl since the week of March 20.

The headline crude draw was largely driven by a 774 mb/d decrease in the "supply

adjustment" factor and slightly lower domestic production. Refinery utilization fell by 10

bps to 91.6%.

Gasoline draw below forecasts; distillates build. Gasoline inventories decreased

by 1.55 mmbbl, below consensus expectations for a 2.66 mmbbl draw and the API-

reported 5.80 mmbbl draw. Distillate stocks posted a modest build of 0.37 mmbbl,