EIA Weekly Petroleum Report - Sept 8

[dan_s]

Summary of Weekly Petroleum Data for the week ending September 2, 2022

U.S. crude oil refinery inputs averaged 15.9 million barrels per day during the week ending September 2, 2022 which was 310,000 barrels per day less than the previous week’s average.
Refineries operated at 90.9% of their operable capacity last week. < Not high enough to rebuild refined product inventories.
Gasoline production increased last week, averaging 9.9 million barrels per day.
Distillate fuel production increased last week, averaging 5.0 million barrels per day.

U.S. crude oil imports averaged 6.8 million barrels per day last week, increased by 824,000 barrels per day from the previous week.
Over the past four weeks, crude oil imports averaged about 6.3 million barrels per day, 1.5% more than the same four-week period last year.
Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 1 million barrels per day, and distillate fuel imports averaged 172,000 barrels per day.

Focus on the deficits to the 5-year average.

> U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 8.8 million barrels from the previous week. At 427.2 million barrels, U.S. crude oil inventories are about 3% below the five year average for this time of year. < At least 7 million barrels were moved from the SPR into commercial inventories.
> Total motor gasoline inventories increased by 0.4 million barrels from last week and are about 6% below the five year average for this time of year. Finished gasoline inventories increased, but blending components inventories were virtually unchanged last week.
> Distillate fuel inventories increased by 0.1 million barrels last week and are about 23% below the five year average for this time of year.
> Propane/propylene inventories increased by 1.9 million barrels from last week and are about 9% below the five year average for this time of year.
>> Total commercial petroleum inventories increased by 11.2 million barrels last week. < Most of it from the SPR.

Total products supplied over the last four-week period averaged 20.1 million barrels a day, down by 6.4% from the same period last year.
Over the past four weeks, motor gasoline product supplied averaged 8.8 million barrels a day, down by 7.9% from the same period last year.
Distillate fuel product supplied averaged 3.8 million barrels a day over the past four weeks, down by 9.1% from the same period last year.
Jet fuel product supplied was down 0.4% compared with the same four-week period last year.
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I've heard that refiners are so focused on keeping up with demand for diesel, that home heating oil inventories are 40% to 50% below the 5-year average in New England.

[SergioSays]

Thank God for the benign hurricane season (knock wood).

[dan_s]

It ain't over yet. Two more new storms heading west: https://www.nhc.noaa.gov/

If Talos Energy (TALO) can avoid hurricane related shutdowns this year, my valuation will be going up. Q3 is looking much better that my forecast.