Crude oil prices lower after the EIA oil inventory report

August 31, 2016 11:32 AM
Weekly Energy Market Analysis

The crude oils are trading lower after the EIA released its latest weekly oil inventory report. The data showed that total crude and product stocks increased by 4.503/mmbls to 1404.679/mmbls for week ending Aug. 26. Looking at the year-on-year for total crude and product stocks we see we are now 115.8/mmbls above last year’s level for this time of the year and above the five-year average by 259.7/mmbls.

Crude oil stocks increased by 2.276/mmbls to 525.870/mmbls which was in line with our projections looking for a build of around 2.2/mmbls for the week under review. Looking at the year-on-year we are running at 70.4/mmbls above last year’s level for this time of the year and 146/mmbls above the five year average. 

When we look at the PADD breakdown we saw a mixed picture with PADD I showing a build of 143,000/bbls to 20.259/mmbls while PADD II showed a draw of 1.403/mmbls to 151.513/mmbls. Cushing, Okla., showed a draw of 1.039/mmbls to 63.867/mmbls while PADD III showed a build of 2.911/mmbls to 275.550/mmbls. PADD IV showed a build of 243,000/bbls to 26.974/mmbls and PADD V showed a build of 381,000/bbls to 52.055/mmbls.       

On the gasoline side of the data the EIA reported that gasoline stocks decreased by a 691,000/bbls to 232.004/mmbls which was less than our projections looking for a draw of around 1/mmbls. 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 17.8/mmbls and we are above the five-year average by 21.2/mmbls. On the distillate side of the report distillate stocks showed a build of 1.496/mmbls to 154.753/mmbls which was slightly more than our projections looking for a build of around 1/mmbls. Looking at the year on year for distillate stocks we see that we are above last year’s level by 4.8/mmbls and we are 18/mmbls above the five year average.

When we look at the breakdown for distillate stocks we see that diesel stocks increased by 1.871mmbls while heating oil stocks decreased by 376,000/bbls. On the refining side of the report refinery runs increased 0.3% to 92.8% for the week under review. Looking at the year on year for refinery runs we see that we are running right at last year’s level and we are above the five-year average by 1.2%. 

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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.