- China's crude imports rose in May, with supplies from Russia reaching their highest level in nearly two years before the virus restrictions were eased (BBG)
- The nation imported nearly 10.84 MMBbl/d of crude in May, the highest level since January
- Seaborne flows from Russia increased to 1.16 MMBbl/d, the highest since June 2020 according to shipping analytics firm Vortexa
- Crude imports are projected to climb further in the coming months as China cautiously recovers from strict COVID restrictions, although Shanghai will close seven districts for mass testing on Saturday, indicating an uncertain outlook
- U.S. gasoline stockpiles dropped by 812 MBbl last week to 218 MMBbl, their lowest seasonal level since 2014, according to EIA
- Distillate stockpiles, which include diesel and heating oil, rose by 2.6 MMBbl in the week to 109 MMBbl
- Meanwhile, consumption is increasing even as the retail price of gasoline, which is already at an all-time high, approaches $5/gal