EIA - Weekly Petroleum Report July 24

[dan_s]

EIA confirms BIG DROP in U.S. crude oil inventory

Summary of Weekly Petroleum Data for the week ending July 19, 2019

U.S. crude oil refinery inputs averaged 17.0 million barrels per day during the week ending July 19, 2019, which was 233,000 barrels per day less than the previous week’s average. Refineries operated at 93.1% of their operable capacity last week. Gasoline production increased last week, averaging 10.1 million barrels per day. Distillate fuel production decreased last week, averaging 5.2 million barrels per day. < Refinery inputs down because of Hurricane Berry during first two days of the week ending July 19. Refiners should ramp up to over 95% next week. Dan.

U.S. crude oil imports averaged 7.0 million barrels per day last week, up by 196,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 7.2 million barrels per day, 13.7% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 985,000 barrels per day, and distillate fuel imports averaged 105,000 barrels per day.

> U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 10.8 million barrels from the previous week. At 445.0 million barrels, U.S. crude oil inventories are about 2% above the five year average for this time of year. < Days of supply continues to fall.
> Total motor gasoline inventories decreased by 0.2 million barrels last week and are about 2% above the five year average for this time of year. Finished gasoline inventories decreased while blending components inventories increased last week.
> Distillate fuel inventories increased by 0.6 million barrels last week and are at the five year average for this time of year.
> Propane/propylene inventories increased by 1.6 million barrels last week and are about 6% above the five year average for this time of year.
>> Total commercial petroleum inventories decreased last week by 6.7 million barrels last week.

Total products supplied over the last four-week period averaged 21.0 million barrels per day, down by 0.3% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.5 million barrels per day, down by 1.5% from the same period last year. Distillate fuel product supplied averaged 3.8 million barrels per day over the past four weeks, down by 6.4% from the same period last year. Jet fuel product supplied was down 1.3% compared with the same four-week period last year.

[dan_s]

Raymond James Energy Research Team forecasts that OECD crude oil inventories will decline by ~200 million barrels during 2H 2019 and keep falling in 2020. Come to our Hess Club luncheon on July 31st to hear the details behind this forecast.

Note in the EIA press release above that U.S. crude oil inventories had a big decline despite imports being up. My take is that U.S. oil production growth has come to a halt. Listen to my last podcast.