U.S. crude oil inventories drop more than expected in the last week

by Ike Obudulu Posted on January 16th, 2019

Washington D.C., USA: U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 2.7 million barrels (vs 1.4 million barrels expected) from the previous week. At 437.1 million barrels, U.S. crude oil inventories are about 8% above the five year average for this time of year. Total motor gasoline inventories increased by 7.5 million barrels last week and are about 6% 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 3.0 million barrels last week and are about 3% below the five year average for this time of year. Propane/propylene inventories decreased by 1.2 million barrels last week and are about 1% above the five year average for this time of year. Total commercial petroleum inventories increased last week by 5.0 million barrels last week.

U.S. crude oil refinery inputs averaged 17.2 million barrels per day during the week ending January 11, 2019, which was 343,000 barrels per day less than the previous week’s average. Refineries operated at 94.6% of their operable capacity last week. Gasoline production increased last week, averaging 9.6 million barrels per day. Distillate fuel production decreased last week, averaging 5.4 million barrels per day.

U.S. crude oil imports averaged 7.5 million barrels per day last week, down by 319,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 7.6 million barrels per day, 3.6% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 377,000 barrels per day, and distillate fuel imports averaged 378,000 barrels per day.

Total products supplied over the last four-week period averaged 20.1 million barrels per day, down by 2.1% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.8 million barrels per day, down by 1.0% from the same period last year. Distillate fuel product supplied averaged 3.7 million barrels per day over the past four weeks, down by 8.9% from the same period last year. Jet fuel product supplied was down 5.7% compared with the same four-week period last year.

February West Texas Intermediate crude CLG9, -0.98% was down 4 cents, or less than 0.1%, at $52.07 a barrel on the New York Mercantile Exchange. It was trading at $52.23 before the data.

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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