Bearish Government Reports Weigh on Oil Prices

Strategic Insights -

Bearish government reports on U.S. oil inventories kept petroleum futures under downward pressure in New York on Wednesday, with gasoline leading the way. While the American Petroleum Institute's (API) latest weekly stock reports were essentially neutral for crude and heating oil and bearish for gasoline, the Energy Information Administration's (EIA) figures were bearish for all three. The EIA's report showed a significant increase in gasoline stocks, a small rise in crude stocks, and a notable increase in distillate stocks. The gasoline data was particularly bearish, as the rise in stocks came despite a decline in production and a rise in demand.

Key Takeaways:

  • Bearish government reports on U.S. oil inventories weighed on petroleum futures in New York, with gasoline leading the way.
  • The Energy Information Administration's (EIA) report showed a 2.2 million bbl increase in crude stocks and a 100,000 bbl increase in gasoline stocks.
  • The refinery utilization rate increased 2.4 percentage points to 99.2% of capacity, despite a decline in production and a rise in demand.
  • Gasoline stocks rose 14.8 million bbl higher compared to last year at the same time, standing at 14.8 million bbl.
  • Heating oil prices were pushed lower by additions to U.S. distillate stocks, with June heating oil closing at 43.82 cents/gallon, down 0.48 cents on the day.
  • Nymex crude futures ended the day down 10 cents at $15.37/bbl, while June IPE Brent closed down 15 cents at $14.49/bbl.

Statistics:

  • Crude stocks rose 2.2 million bbl according to the EIA.
  • Gasoline stocks increased 100,000 bbl according to the EIA.
  • Distillate stocks rose 700,000 bbl according to the EIA.
  • The refinery utilization rate increased 2.4 percentage points to 99.2% of capacity.
  • Gasoline stocks rose 14.8 million bbl higher compared to last year at the same time.
  • Heating oil prices fell 0.48 cents on the day, closing at 43.82 cents/gallon.
  • Nymex crude futures ended the day down 10 cents at $15.37/bbl.
  • June IPE Brent closed down 15 cents at $14.49/bbl.

Sources:

  • American Petroleum Institute (API) weekly stock reports
  • Energy Information Administration (EIA) report for the week ended May 1
  • New York Mercantile Exchange (Nymex)
  • International Petroleum Exchange (IPE)
  • Gas Mart, New Orleans