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Petroleum industry

US Crude Inventories Fall for Sixth Consecutive Week Despite Refined Product Gains

Strategic Insights

— 2 min read

The Energy Information Administration's latest report showed that US crude inventories fell by 2.15 million barrels to 333.11 million barrels, marking the sixth consecutive weekly drop. However, refined product stocks, including gasoline and distillates, surged, with gasoline stocks increasing by 5.08 million barrels to 223.23 million barrels. The unexpected drop in crude imports, down by 449,000 barrels per day to 8.86 mbpd, also contributed to the decline in crude inventories. Over the past six weeks, crude inventories have decreased by 26.6 million barrels, the largest six-week decline since January 2008. The Gulf Coast region saw a significant decrease in crude stocks, falling by 7.3 million barrels to their lowest level since late 2008. Meanwhile, stocks of gasoline and distillates rose, despite an unexpected drop in refinery utilization rates.

Key Takeaways:

  • Crude inventories fell by 2.15 million barrels to 333.11 million barrels, the sixth consecutive weekly drop.
  • Refined product stocks, including gasoline and distillates, surged, with gasoline stocks increasing by 5.08 million barrels to 223.23 million barrels.
  • Crude imports fell by 449,000 barrels per day to 8.86 mbpd, contributing to the decline in crude inventories.
  • Over the past six weeks, crude inventories have decreased by 26.6 million barrels, the largest six-week decline since January 2008.
  • The Gulf Coast region saw a significant decrease in crude stocks, falling by 7.3 million barrels to their lowest level since late 2008.
  • Refinery utilization rates dropped unexpectedly by 1.6 percentage points to 86.4 per cent.
  • Gene McGillian of Tradition Energy stated that the report showed builds in gasoline and distillates and a drop in refining rates, making the 2 million barrel drop in crude stocks seem less bullish.
  • Inventories at the key Cushing, Oklahoma, hub fell 117,000 barrels to 37.4 million barrels, the first drop in nine weeks.
  • US oil futures rose by $1.06 cents to $92.17 a barrel after the EIA data.
  • Total oil product demand over the past four weeks grew 4.1 per cent versus year-ago levels, and gasoline demand was up 1.9 per cent from a year ago.
  • Kyle Cooper of IAF Advisors stated that the oil market was acting logically with crude strongest on the day and products weakest.

Statistics:

  • US crude inventories fell by 2.15 million barrels to 333.11 million barrels.
  • Refined product stocks, including gasoline and distillates, rose by 7.73 million barrels.
  • Crude imports fell by 449,000 barrels per day to 8.86 mbpd.
  • Crude inventories decreased by 26.6 million barrels over the past six weeks.
  • The Gulf Coast region saw a 7.3 million barrel decrease in crude stocks.
  • Refinery utilization rates dropped by 1.6 percentage points to 86.4 per cent.
  • Total oil product demand grew 4.1 per cent versus year-ago levels.
  • Gasoline demand was up 1.9 per cent from a year ago.
  • US oil futures rose by $1.06 cents to $92.17 a barrel after the EIA data.

Sources:

  • Energy Information Administration
  • Tradition Energy
  • IAF Advisors
  • Reuters
  • Al Hilal Publishing & Marketing Group (www.tradearabia.com)
  • Syndigate.info an Albawaba.com company

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