U.S. Crude Oil Inventories Decreased 4.3M vs 2.2M Expected

by Ike Obudulu Posted on September 6th, 2018

Washington D.C., USA: U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 4.3 million barrels from the previous week. At 401.5 million barrels, U.S. crude oil inventories are at the five year average for this time of year.

Economists consensus had forecast drop of 2.2 million barrels for the previous week

Total motor gasoline inventories increased by 1.8 million barrels last week and are about 7% above the five year average for this time of year. Finished gasoline and blending components inventories both increased last week. Distillate fuel inventories increased by 3.1 million barrels last week and are about 6% below the five year average for this time of year. Propane/propylene inventories increased by 2.0 million barrels last week and are about 12% below the five year average for this time of year. Total commercial petroleum inventories increased last week by 3.6 million barrels last week.

U.S. crude oil refinery inputs averaged 17.6 million barrels per day during the week ending August 31, 2018, which was 81,000 barrels per day more than the previous week’s average. Refineries operated at 96.6% of their operable capacity last week. Gasoline production decreased last week, averaging 10.2 million barrels per day. Distillate fuel production increased last week, averaging 5.4 million barrels per day.

U.S. crude oil imports averaged 7.7 million barrels per day last week, up by 229,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 7.9 million barrels per day, 0.5% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 988,000 barrels per day, and distillate fuel imports averaged 286,000 barrels per day.

Total products supplied over the last four-week period averaged 21.4 million barrels per day, up by 3.0% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.7 million barrels per day, up by 1.1% from the same period last year. Distillate fuel product supplied averaged 4.2 million barrels per day over the past four weeks, up by 2.9% from the same period last year. Jet fuel product supplied was up 5.1% 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.

Other Economy News : U.S. Labor Productivity Growth Unrevised At 2.9% In Q2

Reflecting upward revisions to both output and hours worked, the Labor Department released a report on Thursday showing the pace of growth in labor productivity in the second quarter was unrevised.

The report said labor productivity increased by 2.9 percent in the second quarter, unrevised from the preliminary estimate but still reflecting a significant acceleration from the 0.3 percent uptick in the first quarter. Economists had expected productivity growth to be upwardly revised to 3.0 percent.

The unrevised reading on productivity, a measure of output per hour, came as the increases in output and hours worked were both upwardly revised to 5.0 percent and 2.0 percent, respectively.

Meanwhile, the Labor Department said the decrease in unit labor costs in the second quarter was revised to 1.0 percent from 0.9 percent. Economists had expected the drop in unit labor costs to be unrevised.

The decrease in unit labor costs in the second quarter, which followed a 3.4 percent spike in the first quarter, came as a 1.9 percent jump in hourly compensation was offset by the increase in productivity.

The Labor Department said real hourly compensation, which takes changes in consumer prices into account, edged up by 0.2 percent in the second quarter.

Compared to the same quarter a year ago, productivity was up by 1.3 percent in the second quarter, as output jumped by 3.5 percent and hours worked increased by 2.2 percent.

Unit labor costs were up by 1.9 year-over-year in the second quarter amid a 3.2 percent surge in hourly compensation. Real hourly compensation was up just 0.5 percent year-over-year.

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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