EIA Crude +5m, Gasoline -1.38m, Dist +0.080mBearish report for crude with a 5m build, helped halfway by a 2.5m SPR release.
Products still drawing.
Crude inventory data with and without adjustments:
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US crude imports by origin in kbpd (incl. w/w changes) Canada +323 to 3592 Mexico +283 to 676 Saudi Arabia +34 to 415 Iraq -73 to 174 Colombia +292 to 339 Ecuador -44 to 101 Nigeria +186 to 329 Brazil +5 to 144 Libya -76 to 23 EIA US crude inventories rose by 2.612mb last week (commercial +5.040mb, SPR -2.428mb) EIA EIA data, week ending 5/12 Crude oil: +5.0M Domestic prod: 12.2MMbpd SPR: -2.4M Cushing: +1.5M Gasoline: -1.4M Impld mogas demand: 8.91Mbpd Distillates: +0.1M Refiner utilz: 92.0% Total exports: 10.8MMbpd EIA (wk ending 12 May) Crude: 5.040M Cushing: 1.461M Gasoline: -1.381M Distillates: 0.080M 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 OIL INVENTORIES:
Crude oil inventories increased by 5.0 million barrels (MMbbl) to a total of 467.6 MMbbl. At 467.6 MMbbl, inventories are 46.8 MMbbl above last year (11.1%) and are about 0% below the five-year average for this time of year. Inventories in Cushing, OK, the NYMEX delivery point, rose 1.5 million barrels to a total of 35.5 million barrels. The Strategic Petroleum Reserve (SPR) fell 2.4 million barrels from the prior week and stands at 359.6 million barrels, 33.2% below the year ago level.
Domestic crude oil production fell 100,000 barrels to 12.2 million barrels per day, 300,000 bpd higher than the year ago period. Alaska oil production fell 37,000 barrels to 405,000bpd, while production in the Lower 48 fell 100,000 barrels to 11.8 million barrels per day.
GASOLINE INVENTORIES:
Gasoline inventories decreased by 1.4 million barrels (MMbbl) to a total of 218.3 MMbbl. At 218.3 MMbbl, inventories are down 1.9 MMbbl, or 0.8% lower than a year ago and are 6% below the five-year average for this time of year.
Here’s how individual regions and their gasoline inventory fared:
East Coast (+0.6 MMbbl)
Midwest (-0.8 MMbbl)
Gulf Coast (+0.7 MMbbl)
Rockies (-0.3 MMbbl)
West Coast (-0.7 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 increased by 0.1 million barrels to a total of 106.2 MMbbl. At 106.2 MMbbl, inventories are up 1.0MMbbl, or 0.9% higher vs. a year ago. Distillate inventories stand about 16% below the five-year average for this time of year.
IMPLIED GASOLINE DEMAND:
Gasoline supplied to the market amounted to 8.91 million barrels per day (MMbpd), or 395,000 bpd lower than the previous week. So far in 2023, implied gasoline demand (“products supplied”) is 0.6% higher versus 2022, per the EIA.
REFINERY OUTPUT/UTILIZATION:
Refinery utilization increased by 1.0 percentage points vs. last week’s numbers to reach 92.0%. Gasoline production decreased to 9.5 million barrels per day while distillate fuel production increased to 4.9 million barrels per day last week.
Utilization rates for the last week were as follows:
East Coast: 90.3% (-1.0%)
Midwest: 86.2% (+0.7%)
Gulf Coast: 97.6% (+0.6%)
Rocky Mountains: 73.9% (+2.1%)
West Coast: 85.8% (+3.8%)
These percentages show how much of a region’s overall capacity was 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 lower or falling utilization rates, you’re more likely to see gas prices rise.
OVERALL SUPPLY:
Total oil stocks in the United States (excluding the SPR) are up by 89.0 MMbbl (7.7%) versus a year ago and stand at 1.242 billion barrels (excluding the Strategic Petroleum Reserve). Including the SPR, total stocks are down 89.4 million barrels (-5.3%) versus a year ago.
IMPORTS/EXPORTS:
The U.S. imported 6.86 MMbpd of crude oil per day last week, up 1,306,000 bpd vs. the previous week, while crude oil exports rose by 1,434,000 bpd to 4.31 MMbpd. Total motor gasoline imports last week averaged 844,000 bpd. The U.S. also imported 128,000 bpd of distillate fuels. However, during the same timeframe, the U.S. exported 930,000 bpd of finished gasoline and 1,236,000 bpd of distillates. In total, U.S. companies exported 10.81 MMbpd of oil and petroleum products.
Before the report was released, the price of West Texas Intermediate crude oil was up 65 cents to $71.51 per barrel. Just after the report was released, oil was up 59 cents per barrel