Oil Storage Report - Sept 8

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The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 14.51 million barrels in the week ended September 2. Market analysts' expected a crude-stock gain of 225,000 barrels, while the American Petroleum Institute late Tuesday reported a supply drop of 12.1 million barrels.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, decreased by 434,000 barrels last week, the EIA said.
Total U.S. crude oil inventories stood at 511.4 million barrels as of last week, which the EIA considered to be “historically high levels for this time of year”.
The report also showed that gasoline inventories declined by 4.211 million barrels, compared to expectations for a 171,000-barrel drop.
For distillate inventories including diesel, the EIA reported an increase of 3.382 million barrels.

This big drop in crude oil inventories is primarily because of the tropical storm activity in the Gulf of Mexico. Tankers stay out of the GOM when the waves get high. Topical depression 92L is now headed toward the Gulf of Mexico and should cause more problems for tanker deliveries next week. A larger depression is behind 92L that will take it up the East Coast. For details on the weather go to http://www.weatherbell.com/premium/