05:55 AM EDT, 07/02/2024 (MT Newswires) -- U.S. crude oil inventories are expected to drop by 10.9 million barrels in the week ended June 28, compared to a 3.6-million-barrel increase in the previous week, Macquarie strategists said in a Friday note.

This would result in the total U.S. crude balance becoming modestly tighter than anticipated, Macquarie said.

Among net imports, the strategists modeled a very large reduction, with exports sharply higher at 1.2 million barrels per day (b/d) and imports moderately lower, decreasing 0.4 million b/d. The increase in exports follows weather-related disruptions a week ago, which the strategists noted as "reasonable."

A moderate decrease of 0.4 million b/d is expected for implied domestic supply. Meanwhile, the U.S. strategic petroleum reserve inventory is seen to record a smaller increase week-over-week at 0.7 million barrels.

In products, Macquarie expects across-the-board draws, led by distillate at 2.3 million million barrels and gasoline at 1.2 million barrels. Jet stocks are also projected to fall by 0.3 million barrels. Implied demand for the three products were modeled at 14.8 million b/d.