U.S. Crude Oil Inventories Decreased 2.6M vs 0.7M Expected

by Ike Obudulu Posted on August 29th, 2018

Washington D.C., USA: U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 2.6 million barrels from the previous week. At 405.8 million barrels, U.S. crude oil inventories are at the five year average for this time of year. Total motor gasoline inventories decreased by 1.6 million barrels last week and are about 5% above the five year average for this time of year.

Economists consensus had forecast drop of 0.7 million barrels for the week ended August 24.

Finished gasoline inventories decreased while blending components inventories remained virtually unchanged last week. Distillate fuel inventories decreased by 0.8 million barrels last week and are about 8% below the five year average for this time of year. Propane/propylene inventories increased by 2.6 million barrels last week and are about 12% below the five year average for this time of year.

U.S. crude oil refinery inputs averaged 17.6 million barrels per day during the week ending August 24, 2018, which was 326,000 barrels per day less than the previous week’s average. Refineries operated at 96.3% of their operable capacity last week. Gasoline production increased last week, averaging 10.2 million barrels per day. Distillate fuel production decreased last week, averaging 5.2 million barrels per day.

U.S. crude oil imports averaged 7.5 million barrels per day last week, down by 33,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 8.0 million barrels per day, 1.9% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 868,000 barrels per day, and distillate fuel imports averaged 274,000 barrels per day.

Total commercial petroleum inventories decreased last week by 1.7 million barrels last week. Total products supplied over the last four-week period averaged 21.2 million barrels per day, down by 0.2% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.6 million barrels per day, down by 1.5% from the same period last year. Distillate fuel product supplied averaged 4.1 million barrels per day over the past four weeks, down by 1.5% from the same period last year. Jet fuel product supplied was up 5.2% compared with the same four-week period last year.

Why Markets Care About crude oil inventories (Crude Stocks, Crude Levels)

Crude Oil Inventories (Crude Stocks, Crude Levels) measures change in the number of barrels of crude oil held in inventory by commercial firms during the past week

It is released released weekly, 4 days after the week ends by the Energy Information Administration (EIA)

There is no consistent effect as there are both inflationary and growth implications. While this is a US indicator, it most affects the loonie due to Canada’s sizable energy sector.

Crude oil inventories (crude stocks, crude levels) is the primary gauge of supply and demand imbalances in the market, which can lead to changes in production levels and price volatility.

Author

Ike Obudulu

Ike Obudulu

Versatile Certified Fraud Examiner, Chartered Accountant, Certified Internal Auditor with an MBA in Finance And Investments who has both worked for and consulted with some of the world's largest companies on main street and wall street in over 20 countries, Ike brings his extensive reporting and investigations experience to bear on his role as Chief Editor.
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