US: EIA Petroleum Status Report


Wed Apr 11 09:30:00 CDT 2018

Actual Previous
Crude oil inventories (weekly change) 3.3M barrels -4.6M barrels
Gasoline (weekly change) 0.5M barrels -1.1M barrels
Distillates (weekly change) -1.0M barrels 0.5M barrels

Highlights
Crude oil inventories rose 3.3 million barrels in April 6 week to 428.6 million, 19.6 percent below their level a year ago. Product inventories were mixed, with gasoline rising 0.5 million barrels in the week to 238.9 million, 1.2 percent above last year's level at this time, while distillates fell 1.0 million barrels to 128.4 million, down 14.5 percent year-on-year. The EIA crude oil build was larger than the 1.8 million barrel increase reported Tuesday afternoon by the American Petroleum Institute (API), a private industry group, but the API also reported a larger build for gasoline of 2.0 million barrels and a larger draw of 3.8 million barrels for distillates. WTI prices, which had risen in earlier trading on the back of possible U.S. military action in Syria, rose another 80 cents to around $66.80 per barrel immediately following the release of the EIA report.

Refineries ramped up to operate at 93.5 percent of their operable capacity, up 0.5 percentage points from the prior week. Production increased, averaging 10.2 million barrels per day for gasoline and 5.3 million barrels per day for distillates.

Imports rose to an average of 8.7 million barrels per day, up by 752,000 million barrels per day from the prior week. The 4-week average rose to 7.9 million barrels per day, 1.5 percent less than in the same period last year.

Domestic crude oil production over the last four weeks averaged 10.5 million barrels per day, 13.9 percent above the level a year ago.

Overall product demand eased slightly while remaining strong, with total product supplied over the last four weeks averaging 20.7 million barrels per day, up 5.0 percent from the same period last year. But demand for the main product categories continued to sag and moved into negative year-on-year territory, as gasoline supplied averaged 9.3 million barrels per day, down 0.6 percent from the same period last year while distillates averaged 4.1 million barrels per day, down 3.6 percent year-on-year.

Definition
The Energy Information Administration (EIA) provides weekly information on petroleum inventories in the U.S., whether produced here or abroad. The level of inventories helps determine prices for petroleum products.



Description
Petroleum product prices are determined by supply and demand - just like any other good and service. During periods of strong economic growth, one would expect demand to be robust. If inventories are low, this will lead to increases in crude oil prices - or price increases for a wide variety of petroleum products such as gasoline or heating oil. If inventories are high and rising in a period of strong demand, prices may not need to increase at all, or as much. During a period of sluggish economic activity, demand for crude oil may not be as strong. If inventories are rising, this may push down oil prices.

Crude oil is an important commodity in the global market. Prices fluctuate depending on supply and demand conditions in the world. Since oil is such an important part of the economy, it can also help determine the direction of inflation. In the U.S., consumer prices have moderated whenever oil prices have fallen, but have accelerated when oil prices have risen.