Crude prices mixed after inventory report

July 20, 2016 10:38 AM
Weekly Energy Market Analysis

Crude oil inventory report 

Crude oil prices are mixed after the EIA oil inventory report. The oils are trading mixed after the EIA released its latest weekly oil inventory report. The data showed total crude and product stocks increased by 2.622/mmbls to 1384.968/mmbls for week ending July 15. Looking at the year-on-year for total crude and product stocks we see we are now 111/mmbls above last year’s level for this time of the year and above the five year average by 243.1/mmbls.

Crude oil stocks decreased by 2.342/mmbls to 519.462/mmbls versus our projections looking for a build of around 1/mmbls for the week under review. Looking at the year on year we are running at 55.6/mmbls above last year’s level for this time of the year and 133.3/mmbls above the five-year average. When we look at the PADD breakdown we saw a mixedx picture with PADD I showing a build of 276,000/bbls to 16.668/mmbls while PADD II showed a draw of 145,000/bbls to 149.989/mmbls. Cushing, Okla., showed a build of 189,000/bbls to 64.105/mmbls while PADD III showed a draw of 2.533/mmbls to 269.627/mmbls. PADD IV showed a draw of 65,000/bbls to 24.005/mmbls while PADD V showed a build of 125,000/bbls to 58.526/mmbls.       

On the gasoline side of the data the EIA reported that gasoline stocks increased by a 911,000/bbls to 241.000/mmbls which was slightly less than our projections looking for a build of around 500,000/bbls. Looking at the year on year for gasoline stocks we see that we are above last year’s level for this time of the year by 24.7/mmbls and we are above the five year average by 26.6/mmbls. On the distillate side of the report distillate stocks showed a draw of 214,000/bbls to 152.783/mmbls versus our projections looking for a build of around 500,000/bbls.

Looking at the year on year for distillate stocks we see that we are above last year’s level by 11.3/mmbls and we are 19.3/mmbls above the five-year average. When we look at the breakdown for distillate stocks we see that diesel stocks increased by 972,000/bbls while heating oil stocks decreased by 1.185/mmbls. On the refining side of the report refinery runs increased 0.9% to 93.2% for the week under review. Looking at the year on year for refinery runs we see that we are running below last year’s level by 2.3% while we are above the five-year average by 0.2%. 

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Energy Market Analysis is published daily by the Energy Management Institute 1324 Lexington Avenue, # 322, New York, NY 10128. Copyright 2008. Reproduction without permission is strictly prohibited. Subscriptions: $129 for annual orders. Editor in Chief: Dominick Chirichella, Publisher: Stephen Gloyd, Editor Sal Umek.