EIA Oil Storage Report - Jan 18

[dan_s]

The U.S. Energy Information Administration ("EIA") said in its weekly report that crude oil inventories fell by 6.861 million barrels in the week ended January 12. Market analysts' had expected a crude-stock draw of 3.536 million barrels, while the American Petroleum Institute late Wednesday reported a supply draw of 5.121 million barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, decreased by 4.184 million barrels last week, the EIA said.

Total U.S. crude oil inventories stood at 412.7 million barrels as of last week, according to press release, which the EIA considered to be “in the middle of the average range for this time of year”.

The report also showed that gasoline inventories increased by 3.620 million barrels, compared to expectations for a build of 3.426 million barrels, while distillate stockpiles fell by 3.887 million barrels, compared to forecasts for an increase of 0.086 million.
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MY TAKE: Can we PLEASE say the oil "glut" is now officially over. U.S. crude oil inventories are falling faster than expected and the decline is counter-seasonal. U.S. crude oil inventories should be building NOW to prepare for the big increase in demand coming just a few months from now. The big decline in distillates makes sense as heating oil demand is way above what was expected. We are safe from Global Warming for at least one more year. I thought sure Al Gore said Galveston would be under water by 2018. Could it be that he was wrong????????????

Weakness of the U.S. dollar is also supporting oil prices, but the dollar appears to have found support around 90.5
Read: https://www.marketwatch.com/story/dolla ... 2018-01-18

[dan_s]

Here are the important numbers from today's EIA report:

Days of
Supply

23.9 < Crude Oil
27.1 < Gasoline
23.1 < Jet Fuel
34.1 < Distillates (Diesel and heating oil)
34.8 < Propane (down from 60.1 days of supply just five weeks ago)

The U.S. economy and our standard of living depends on a steady supply of this stuff. ~30 days of supply is where we should be. Under 20 days of supply is the "Danger Zone".