Crude prices higher after the inventory report

September 28, 2016 10:50 AM

The energy complex is trading higher after the EIA released its latest weekly oil inventory report. The data showed Total Crude & Product stocks decreased by 10,000/bbls to 1390.907/mmbls for week ending Sept. 23. Looking at the year on year for Total Crude & Product stocks we see we are now 89.6/mmbls above last year’s level for this time of the year and above the five year average by 242.6/mmbls.

Crude oil stocks decreased by 1.882/mmbls to 502.716/mmbls versus our projections looking for a build of around 5/mmbls for the week under review. Looking at the year on year we are running at 44.8/mmbls above last year’s level for this time of the year and 125.9/mmbls above the five-year average. When we look at the PADD breakdown we saw a lower picture with PADD I showing a draw of 3.269/mmbls to 14.239/mmbls and PADD II showed a draw of 366,000/bbls to 146.639/mmbls. Cushing, Okla., showed a draw of 631,000/bbls to 62.083/mmbls and PADD III showed a draw of 664,000/bbls to 264.694/mmbls. PADD IV showed a draw of 30,000/bbls to 25.227/mmbls while PADD V showed a build of 2.446/mmbls to 51.916/mmbls.       

On the gasoline side of the data the EIA reported that gasoline stocks increased by a 2.027/mmbls to 227.183/mmbls which was slightly more than our projections looking for a build of around 2/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 5.2/mmbls and we are above the five year average by 15/mmbls. On the distillate side of the report distillate stocks showed a draw of 1.915/mmbls to 163.077/mmbls versus 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 11.5/mmbls and we are 25.4/mmbls above the five year average. When we look at the breakdown for distillate stocks we see that diesel stocks decreased by 2.257/mmbls while heating oil stocks increased by 341,000/bbls. On the refining side of the report refinery runs decreased 1.9 percent to 90.1% for the week under review. Looking at the year on year for refinery runs we see that we are above last year’s level by 0.3% and we are above the five year average by 1.2%. 

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