Oil Price - July 13
Posted: Thu Jul 13, 2017 10:16 am
Analysis of the EIA Data
Crude Oil: The federal government’s EIA report revealed that crude inventories fell by 7.56 million barrels for the week ending July 7, 2017, following a decline of 6.30 million barrels in the previous week.
The analysts surveyed by S&P Global Platts – the leading independent commodities and energy data provider – had expected crude stocks to go down some 2.6 million barrels. A surge in refinery crude runs to near record highs and dip in imports led to the big stockpile draw with the world's biggest oil consumer even as domestic production continued to increase (now at their highest level since July 2015).
Importantly, stocks at the Cushing terminal in Oklahoma – the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange – was down 1.95 million barrels from previous week’s level to 57.56 million barrels, the lowest since November 2015.
While the twelfth inventory reduction in 14 weeks will further help narrow the year-over-year storage surplus, the U.S. still remains awash with excess oil. At 495.35 million barrels, current crude supplies are up 0.9% from the year-ago period and are in the upper half of the average range during this time of the year. ("awash" is another one of the words that is overused during oil price cycles. The U.S. has crude oil storage capacity of ~640 million barrels, so we are a long way from washing our clothing in oil. - Dan)
The crude supply cover was down from 29.4 days in the previous week to 29.0 days. In the year-ago period, the supply cover was 31.4 days. (IMHO having less than 30 days supply of oil in inventory is a long way from "awash". Oil is absolutely critical to our economy and standard of living. Shouldn't we have a lot in inventory? - Dan)
Gasoline: Supplies of gasoline were down for the fourth successive week as demand strengthened and imports declined. The 1.65 million barrels draw – contrary to the polled number of 400,000 barrels rise in supply level – took gasoline stockpiles down to 235.66 million barrels. As a result of recent decreases, the existing stock of the most widely used petroleum product has now fallen 1.8% below the year-earlier level but is in the upper half of the average range.
Distillate: Distillate fuel supplies (including diesel and heating oil) went up by 3.13 million barrels last week, well ahead of analysts’ expectations for 1.2 million barrels increase in supply level. The fifth increase in 7 weeks could be attributed to weak demand. At 153.55 million barrels, current supplies are almost in line with the year-ago level and are over the upper limit of the average range for this time of the year.
Refinery Rates: Refinery utilization was up by 0.9% from the prior week to 94.5%.
Crude Oil: The federal government’s EIA report revealed that crude inventories fell by 7.56 million barrels for the week ending July 7, 2017, following a decline of 6.30 million barrels in the previous week.
The analysts surveyed by S&P Global Platts – the leading independent commodities and energy data provider – had expected crude stocks to go down some 2.6 million barrels. A surge in refinery crude runs to near record highs and dip in imports led to the big stockpile draw with the world's biggest oil consumer even as domestic production continued to increase (now at their highest level since July 2015).
Importantly, stocks at the Cushing terminal in Oklahoma – the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange – was down 1.95 million barrels from previous week’s level to 57.56 million barrels, the lowest since November 2015.
While the twelfth inventory reduction in 14 weeks will further help narrow the year-over-year storage surplus, the U.S. still remains awash with excess oil. At 495.35 million barrels, current crude supplies are up 0.9% from the year-ago period and are in the upper half of the average range during this time of the year. ("awash" is another one of the words that is overused during oil price cycles. The U.S. has crude oil storage capacity of ~640 million barrels, so we are a long way from washing our clothing in oil. - Dan)
The crude supply cover was down from 29.4 days in the previous week to 29.0 days. In the year-ago period, the supply cover was 31.4 days. (IMHO having less than 30 days supply of oil in inventory is a long way from "awash". Oil is absolutely critical to our economy and standard of living. Shouldn't we have a lot in inventory? - Dan)
Gasoline: Supplies of gasoline were down for the fourth successive week as demand strengthened and imports declined. The 1.65 million barrels draw – contrary to the polled number of 400,000 barrels rise in supply level – took gasoline stockpiles down to 235.66 million barrels. As a result of recent decreases, the existing stock of the most widely used petroleum product has now fallen 1.8% below the year-earlier level but is in the upper half of the average range.
Distillate: Distillate fuel supplies (including diesel and heating oil) went up by 3.13 million barrels last week, well ahead of analysts’ expectations for 1.2 million barrels increase in supply level. The fifth increase in 7 weeks could be attributed to weak demand. At 153.55 million barrels, current supplies are almost in line with the year-ago level and are over the upper limit of the average range for this time of the year.
Refinery Rates: Refinery utilization was up by 0.9% from the prior week to 94.5%.