The Department of Energy released its weekly report on the condition of petroleum inventories in the United States today.

Here are some highlights:

Crude oil inventories increased by 2 million barrels to a total of 365.1 million barrels. At 365.1 million barrels, inventories are 11.3 million barrels above last year (3.2%) and remain above average. Supply at NYMEX delivery point, Cushing, Oklahoma decreased some 800,000 barrels to 36.8 million barrels this week- a sizable drop.

Gasoline inventories decreased 800,000 barrels to 217.6 million barrels. At 217.6 million barrels, inventories are now 4.2% higher than last year (last week that number was 13.3% higher). Decreases in gasoline inventories were seen on the East Coast (-0.7mb), the Gulf Coast (-0.4mb), and the West Coast (-0.2mb). The Midwest posted a gain (0.2mb) last week, along with the Rocky Mountains (0.2mb)

Distillate inventories increased by 0.3 million barrels to a total of 156.9 million barrels. At 156.9 million barrels, inventories are again higher (3.2%) than a year ago. Demand for distillate fuel (diesel, industrial fuels) is up an average of 12.8% over the last four weeks. Diesel demand has continued to grow faster than gasoline demand as use from industrial users rises.

Refinery utilization increased slightly to 89.4%, a rise of 1.5% over last week's numbers. Gasoline production decreased last week to 9.3 million barrels per day while distillate fuel production averaged 4.3 million barrels per day, a increase over the prior week. Refineries in the Midwest operated at the highest utilization- some 93.5% of capacity. Refiners in the Rocky Mountains came in second at 91.9%. Refiners on the West Coast again ran the lowest percent of available capacity at just 81.2%.

Production of fuel ethanol, a key ingredient in gasoline in much of the U.S. was 846,000 barrels per day an increase of just 7,000bbls/day. This statistic continues to be fairly new.

Total oil stocks in the United States are down 7.1 million barrels (0.6%) over last year and stand at 1.0976 billion barrels (excluding the Strategic Petroleum Reserve).

While wholesale oil and gasoline prices are already trading lower, these numbers may promote a selloff on the market as investors continue to see plenty of adequate supply and spare capacity.