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Petroleum

Gasoline Stocks Plummet Amid Colonial Pipeline Rupture and Houston Flood

Strategic Insights

— 1 min read

The recent rupture of Colonial Pipeline Co.'s main gasoline line to the Northeast and the Houston flood have significantly impacted gasoline stocks in the United States. According to the American Petroleum Institute (API), gasoline stocks plummeted nearly 5.85 million barrels, exceeding traders' predictions of a decline between 1.5 million to 2.5 million barrels. The drop in gasoline stocks is a cause for concern as the country enters the winter season, with many analysts predicting supply shortages to worsen in the coming weeks.

Key Takeaways:

  • Gasoline stocks plummeted almost 5.85 million barrels in the week ended Oct. 21, according to the API.
  • The drop in gasoline stocks was attributed primarily to the rupture of Colonial Pipeline Co.'s main gasoline line to the Northeast.
  • Crude oil stocks held in primary storage dropped 921,000 barrels to 333.01 million barrels, as reported by the API.
  • Distillate stocks surged 1.14 million barrels to 145.06 million barrels, according to the API.
  • The Energy Information Administration (EIA) reported a less-drastic drop in gasoline stocks of 3.4 million barrels to 202.6 million barrels during the week.
  • Crude imports increased to 7.16 million barrels from 7.11 million barrels, according to the API.
  • Amoco Corp. chief economist, Ted Eck, noted that the country is entering the winter season with a "pretty tight" gasoline stock situation, complicated by the Colonial pipeline problems and the Houston flood.

Statistics:

  • Gasoline stocks dropped nearly 5.85 million barrels in the week ended Oct. 21.
  • Crude oil stocks held in primary storage decreased 921,000 barrels to 333.01 million barrels.
  • Distillate stocks increased 1.1 million barrels to 146.3 million barrels, according to the government's EIA.
  • Residual fuel stocks jumped 2 million barrels to 44.1 million barrels, as reported by the EIA.
  • Crude imports increased by 5,000 barrels to 7.16 million barrels.

Sources:

  • American Petroleum Institute (API)
  • Energy Information Administration (EIA)
  • Colonial Pipeline Co.
  • Amoco Corp.

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