DRAWDOWN SEEN IN U.S. DISTILLATE STOCKS

  Tonight's American Petroleum Institute
  oil inventory report is expected to show another drawdown in
  distillate stocks of between two and 7.5 mln barrels for the
  week ending March 20, oil analysts and traders said.
      They said they expect gasoline inventories to be depleted
  by about one to four mln barrels.
      Analysts were divided on the crude stocks. Some saw stocks
  unchanged to as much as three mln barrels higher. Others said
  stocks could be down one to five mln barrels. Crude throughput
  volumes are expected to be unchanged to slightly higher or
  lower than the week ended March 13, traders said.
      The API recorded a 7.4 mln barrel stockdraw for U.S.
  distillates in the week ended March 13. Analysts see another 
  draw reflecting historic seasonal trends.
      For the week ended March 13, API reported gasoline stocks
  down 2.9 mln barrels.
      Those expecting a draw of as much as four mln barrels said
  they are looking for fairly high consumption rates as the
  spring and summer driving season gets underway this year,
  because retail prices are still low compared to recent years.
      U.S. crude oil stocks were reported down by 4.4 mln barrels
  for the week ended March 13. Analysts are divided over the
  outcome for last week because there is uncertainty about
  whether throughput levels increased or decreased last week.
      Some see crude stock levels unchanged to three mln barrels
  higher, while others think inventories could be as much as five
  mln barrels below the previous week.
      The lower estimates are supported by the belief that crude
  runs increased and imports fell.
      The API reported crude runs 154,000 b/d higher for the week
  ended March 13. Analysts are calling it unchanged to slightly
  up or down for the week ended March 20.
      Expectations for product stockdraws are already being
  reflected in firmer prices, traders said. But if draws are at
  the higher end of the estimated range, they added, the effect
  will be bullish. Any stockbuild would be a negative factor,
  they said.
      Crude runs normally increase in March, and any decrease in
  runs would be friendly to the market, said Peter Beutel of
  Elders Energy Futures Inc.
  

