By Srinivas Chowdary Sunkara // petrobazaar // 28th August, 2019.
US statistical and analytical agency, The Energy Information Administration (EIA) published a petroleum supply data for the week ending August 23, 2019. The EIA inventory report measures the weekly change in the number of barrels of crude, gasoline and distillates stocks held by US firms. This report is considered as an important indicator for oil price movements.
As per latest report published, The US commercial crude oil inventories (excluding those in the strategic petroleum reserve) decreased by 10 million barrels from the previous week, largely drawn due to slippage in imports. The total motor gasoline inventories were drawn by 2.1 Mb while distillates stocks sunk by 2.1Mb. The US production numbers rose by 200Kb to 12.5Mbpd despite of US rig count going in nosedive. Analysts forecast that US output will reach to 14 Mbpd by 2020, May not be possible due to basic supply and demand equilibrium. Pressure on oil prices and falling rig numbers will allow to sustain the output at the current levels with a modest growth. U.S crude oil refinery inputs averaged at 17.4 Mbpd , A decrease of 295Kbpd while refineries operated at 95.2% of their operable capacity. Crude stocks at Cushing and Oklahoma are shrinking due to flow into gulf of mexico through new pipelines. As a whole, This report was considered as a bullish and pushed oil prices up.
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