Refined Product Inventories are way down
Posted: Thu Sep 21, 2017 11:57 am
Details of the EIA weekly report here: https://www.eia.gov/dnav/pet/pet_sum_sn ... _nus_w.htm
Gasoline and Distillate inventories have declined by more than 24 million barrels in the three weeks since Hurricane Harvey made landfall just east of Corpus Christi on 8/25/2017.
Prior to the hurricane, U.S. refineries were running at 96.6% capacity. Hurricane related shutdowns took that down to 77.7% of capacity and for the week ending 9/15/2017 U.S. refiners are only back to 83.2% of capacity. It will take several more weeks to get back to 95% of capacity, which is where they will need to run through at least year-end to replenish the depleted inventories of refined products.
This is why WTI has pushed over $50/bbl despite an increase in crude oil inventories. Draws for crude oil inventories will start in October and could be quite large in Q4.
Gasoline and Distillate inventories have declined by more than 24 million barrels in the three weeks since Hurricane Harvey made landfall just east of Corpus Christi on 8/25/2017.
Prior to the hurricane, U.S. refineries were running at 96.6% capacity. Hurricane related shutdowns took that down to 77.7% of capacity and for the week ending 9/15/2017 U.S. refiners are only back to 83.2% of capacity. It will take several more weeks to get back to 95% of capacity, which is where they will need to run through at least year-end to replenish the depleted inventories of refined products.
This is why WTI has pushed over $50/bbl despite an increase in crude oil inventories. Draws for crude oil inventories will start in October and could be quite large in Q4.