U.S. Crude Oil Inventories Increase 3.8M vs 2.6M Decrease Expected

by Ike Obudulu Posted on August 1st, 2018

Washington D.C., USA: U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 3.8 million barrels from the previous week, Energy Information Administration (EIA) of the U.S. Department of Energy, data released today show.

Economists consensus had forecast drop of 2.6 million barrels for the week ended July 27

At 408.7 million barrels, U.S. crude oil inventories are about 1% below the five year average for this time of year.

U.S. crude oil refinery inputs averaged 17.5 million barrels per day during the week ending July 27, 2018, which was 195,000 barrels per day more than the previous week’s average. Refineries operated at 96.1% of their operable capacity last week. Gasoline production increased last week, averaging 10.5 million barrels per day. Distillate fuel production increased last week, averaging 5.2 million barrels per day.

U.S. crude oil imports averaged 7.7 million barrels per day last week, down by 21,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 8.0 million barrels per day, 0.4% more than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 752,000 barrels per day, and distillate fuel imports averaged 157,000 barrels per day.

Total motor gasoline inventories decreased by 2.5 million barrels last week and are about 3% above the five year average for this time of year. Finished gasoline inventories increased while blending components inventories decreased last week. Distillate fuel inventories increased by 3.0 million barrels last week and are about 11% below the five year average for this time of year. Propane/propylene inventories increased by 1.8 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 10.6 million barrels last week.

Total products supplied over the last four-week period averaged 20.9 million barrels per day, up by 0.6% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.7 million barrels per day, down by 0.9% from the same period last year. Distillate fuel product supplied averaged 3.9 million barrels per day more than the past four weeks, down by 5.9% from the same period last year. Jet fuel product supplied was down 1.7% 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.

Oil Markets

Oil prices were back peddling out of the gates this morning ahead of today’s contract expirations in September Brent, after reports from Interfax pointed to increased supply, specifically from Russia, whose oil production was up to 11.22mm bpd this month. However, both Brent and WTI have reversed tack and are moving higher on the positive US-China trade headlines which are easing global growth concerns.

Other Economy News – ADP Non Farm Employment Change

Private payrolls in the U.S. increased by more than expected last month as companies get a boost from lower corporate taxes, ADP and Moody’s Analytics said Wednesday.

Jobs in the U.S. increased by 219,000 in July, while economists polled by Reuters expected a gain of 185,000. July’s job gains were the best since February, when 241,000 jobs were added. Jobs growth for the previous month was also revised up to 181,000 from 177,000.

“The job market is booming, impacted by the deficit-financed tax cuts and increases in government spending,” said Mark Zandi, chief economist of Moody’s Analytics, in a statement. “Tariffs have yet to materially impact jobs, but the multinational companies shed jobs last month, signaling the threat.”

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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