The Energy Information Administration released its weekly report on the condition of petroleum inventories in the United States today.
Here are some highlights:
Crude oil inventories decreased by 4.7 million barrels to a total of 336.3 million barrels. At 336.3 million barrels, inventories are 24.7 million barrels below last year (-4.2%) and are above average.
Gasoline inventories decreased by 1.1 million barrels to 213.7 million barrels. At 213.7 million barrels, inventories are now 6.2 million barrels, or 2.8% lower than last year. Regions posting gains in inventories last week were the Midwest (+0.4mb), and Rocky Mountains (+0.4mb.). Decreases were seen in the East Coast (-1.0mb); Gulf Coast (-0.7mb; and West Coast(-0.2mb). It is important to note which regions saw increases/decreases as this information likely drives prices up (in the case of falling inventories), or down (in the case of rising inventories).
DISTILLATE (diesel, heating oil) INVENTORIES:
Distillate inventories decreased by 0.7 million barrels to a total of 156.9 million barrels. At 156.9 million barrels, inventories are now 9.0% lower than a year ago. Distillate inventories are 15.5 million barrels lower than their year ago level.
Refinery utilization declined to 87.7%, a decrease of 0.1% vs. last week's numbers. Gasoline production increased last week to nearly 9.3 million barrels per day while distillate fuel production also increased to 4.7 million barrels per day. NL]Refineries in the Midwest PADD operated at the highest utilization rate- at 93.8% of capacity. Refiners in the Gulf Coast PADD came in second at 89.7% while refiners in the West Coast PADD came in third with 84.9%. Rockies refiners operated at 81.1% capacity while East Coast refineries ran at 71.0% of capacity. It is important to note these percentages, because the lower the utilization percent, the lower output, which has a direct impact on local gasoline prices. If refiners in your region have low output, you are more likely to see prices rise.
Total oil stocks in the United States are down 64.3 million barrels (-5.6%) over last year and stand at 1.074 billion barrels (excluding the Strategic Petroleum Reserve).
The U.S. imported 505,000 barrels per day of gasoline and 208,000bpd of distillate fuels. However, during the same time frame, the U.S. exported 336,000bpd of gasoline and 881,000bpd of distillates. In total, U.S. refineries exported 2.5 million barrels per DAY of oil and products!
Refinery runs as expected- refineries that refine more expensive oil (West/East Coast) continue to see low runs while areas that refine cheap Canadian oil (Midwest) continue to see high runs. Once again, East Coast refinery utilization declining to 71.0% (-4.4% from the previous week) is cause for concern.