:: Reports --- ID :: 14673
Drawings in U.S crude inventories reported by EIA
Is crude is really moving out?

By Srinivas Chowdary Sunkara // petrobazaar // 11-01-2018

EIA WEEKLY INVENTORY REPORT FOR THE WEEK ENDING 05-01-18.

U.S OIL INVENTORIES

Crude oil stocks in U.S  were drawn by 4.9 Mb to 419.5 Mb with 1.2 % down from previous week, 13.2% slid from a year ago from 483.1Mb. A Large number of crude inventories are drawn from Midwest and  Cushing together by 5.6 Mb. Gasoline stocks were piled up by 4.1Mb at 237.3Mb. Distillate Fuel oil and Residual Fuel oil  inventories were scaled up by 4.3 Mb  at 143.1Mb  and 31.1Mb while Propane/Propylene inventories fell down by 6.3Mb coming altogether the total stocks inched down by 5.5Mb.

U.S OIL IMPORTS

Commercial crude oil imports rose by 0.308Mbpd. Gulf Coast followed by Mid West took a lion share of total U.S crude oil imports. Product imports were increased by 57Kbpd during the last week. Motor gasoline imports were dropped by 85Kbpd where as Distillate and  Residual fuel oil imports were up by 46Kbpd and 19Kbpd respectively.  Export numbers of crude  were down by 0.46 Mbpd while Product exports were rampedup by 0.66Mbpd.

U.S REFINING ACTIVITIES

The total crude oil inputs put into processing was stood at 17.323Mbpd, a decrease of 0.285Mbpd from previous week. A major chunk of the total inputs was utilised in Gulf Coast  followed by Midwest. Refinery operable capacity was geared up by 2K barrels per day at 18.505Mbpd. Gulf Coast utilised 96.6% of total refining capacity followed by West Coast.

U.S PRODUCTION

Both the Crude oil production and Finished motor gasoline production were dropped by 0.29 Mbpd at 9.492Mbpd and  0.429Mbpd at 9.126Mbpd respectively.

CONCLUSION:

Crude stocks were drawn by 4.9Mbpd as against the analysts expected 3.5Mbpd and fell short of an Industry group, API report of 11Mbpd. A dip in refining capacity utilisation and extreme winter weather in  North Dakota might have caused for a sharp fall in production. 

Crude drawings for the last five weeks are considered as a positive sign by the market. Since 1st December, crude inventories were drawn by 34.155 Mbpd, But products stocks were piled up by 38.489 Mbpd resulted in a net increase in crude and oil products was 4.334Mbpd as refineries are running at record levels. An unanswered question is 'where is crude moving out'?