U.S. Crude Oil Inventories Increased 4.9M vs 2.5M Expected

by Ike Obudulu Posted on November 21st, 2018

Washington D.C., USA: U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 4.9 million barrels (vs 2.5 million barrels expected) from the previous week. At 446.9 million barrels, U.S. crude oil inventories are about 6% above the five year average for this time of year. Total motor gasoline inventories decreased by 1.3 million barrels last week and are about 6% above the five year average for this time of year. Finished gasoline inventories increased while blending components inventories decreased last week. Distillate fuel inventories decreased by 0.1 million barrels last week and are about 7% below the five year average for this time of year. Propane/propylene inventories decreased by 2.0 million barrels last week and are about 3% below the five year average for this time of year. Total commercial petroleum inventories decreased last week by 0.2 million barrels last week.

U.S. crude oil refinery inputs averaged 16.9 million barrels per day during the week ending November 16, 2018, which was 423,000 barrels per day more than the previous week’s average. Refineries operated at 92.7% of their operable capacity last week. Gasoline production decreased last week, averaging 10.0 million barrels per day. Distillate fuel production increased last week, averaging 5.2 million barrels per day.

U.S. crude oil imports averaged 7.6 million barrels per day last week, up by 102,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 7.5 million barrels per day, 2.7% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 247,000 barrels per day, and distillate fuel imports averaged 104,000 barrels per day.

Total products supplied over the last four-week period averaged 21.3 million barrels per day, up by 6.9% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.2 million barrels per day, down by 2.6% from the same period last year. Distillate fuel product supplied averaged 4.4 million barrels per day over the past four weeks, up by 9.6% from the same period last year. Jet fuel product supplied was up 2.4% 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. Consumer Sentiment Deteriorates More Than Estimated In November

Consumer sentiment in the U.S. unexpectedly deteriorated by more than initially estimated in the month of November, according to a report released by the University of Michigan on Wednesday.

The report said the consumer sentiment index for November was downwardly revised to 97.5 from the preliminary reading of 98.3.

Economists had expected the consumer sentiment index to be unrevised at 98.3, which was still down slightly from 98.6 in October.

“Although the data recorded a decline of 2.8 Index points following the election, the drop was related more to income than political party,” said Surveys of Consumers chief economist Richard Curtin.

“Among those with incomes in the bottom third, the Sentiment Index rose by 10.4 points and fell by 6.6 points among those in the top third of the income distribution,” he added. “In contrast, the Sentiment Index remained unchanged among Democrats and Republicans.”

The report said the current economic conditions index for November was downwardly revised to 112.3 from 113.2 and is now below the October reading of 113.1. The index of consumer expectations dipped to 88.1 from 89.3.

On the inflation front, one-year inflation expectations slipped to 2.8 percent in November from 2.9 percent in October, while five-year inflation expectations rose to 2.6 percent from 2.4 percent.

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