The Energy Information Administration (EIA) released its weekly report today on the status of petroleum inventories in the United States. Here are some highlights:
CRUDE INVENTORIES:
Crude oil inventories decreased by 2.2 million barrels (MMbbl) to a total of 533.4 MMbbl. At 533.4 MMbbl, inventories are 28.1 MMbbl above last year (5.6%) and are near the upper limit of the average range for this time of year. Inventories at the major delivery point in Cushing, OK rose 0.3 MMbbl to a total of 69.4 million barrels.
GASOLINE INVENTORIES:
Gasoline inventories decreased by 3.0 million barrels to a total of 236.1 MMbbl. At 236.1 MMbbl, inventories are down 3.6 MMbbl, 1.5% lower than a year ago and are in the upper half of the average range for this time of year.
Here’s how individual regions and their gasoline inventory fared last week:
- East Coast (-0.1 MMbbl)
- Midwest (-1.5 MMbbl)
- Gulf Coast (-1.8 MMbbl)
- Rockies (-0.0 MMbbl)
- West Coast (+0.6 MMbbl)
It’s 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 2.2 million barrels to a total of 150.2 MMbbl. At 150.4 MMbbl, inventories are down 13.3 MMbbl, or 8.1% lower vs. a year ago.
IMPLIED DEMAND:
Gasoline supplied to end users amounted to 9.3 million barrels per day (MMbpd), or 30,000bpd higher than the previous week. So far in 2017, gasoline supplied is 3.8% lower versus 2016, per the EIA.
REFINERY OUTPUT/UTILIZATION:
Refinery utilization increased by 0.2% vs. last week’s numbers to 91.0%. Gasoline production increased to 9.9 million barrels per day while distillate fuel production increased to 5.1 million barrels per day last week.
Utilization rates for the last week were as follows:
- East Coast: 78.7% (up 5.1%)
- Midwest: 94.8% (up 0.2%)
- Gulf Coast: 89.6% (down 1.4%)
- Rocky Mountain: 94.8% (up 2.9%)
- West Coast: 95.0% (up 2.8%)
These percentages show how much of a region’s overall capacity were used to refine oil. It’s 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’re more likely to see prices rise.
OVERALL SUPPLY:
Total oil stocks in the United States are up by 0.1 MMbbl (0.0%) over last year and stand at 1.33 billion barrels (excluding the Strategic Petroleum Reserve).
IMPORTS/EXPORTS:
The U.S. imported 7.9 MMbpd of crude oil per day last week, up by 28,000 bpd vs. the previous week. Total motor gasoline imports last week averaged 488,000 bpd. The U.S. also imported 118,000 bpd of distillate fuels. However, during the same timeframe, the U.S. exported 710,000 bpd of finished gasoline and 851,000 bpd of distillates. In total, U.S. refineries exported 5.0 MMbpd of oil and petroleum products.
Shortly before the EIA report was released, oil was trading up 3 cents per barrel. Shortly after the report was released, oil was up 4 cents per barrel.