Energy Prospectus

West Texas Intermediate oil futures extended gains on Wednesday, after data showed that oil supplies in the U.S. fell for the first time in 11 weeks last week.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories declined by 3.6 million barrels in the week ended December 4. Market analysts' expected a crude-stock rise of 252,000 barrels, while the American Petroleum Institute late Tuesday reported a supply drop of 1.9 million barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 423,000 barrels last week, compared to forecasts for a build of 725,000 barrels.

Gasoline inventories increased by 0.8 million barrels, below expectations for a gain of 2.2 million barrels, while distillate stockpiles rose by 5.0 million barrels.

Note the big drop in propane inventories. This should help NGL prices, which have been terrible this year. - Dan

EIA Petroleum Inventories --

Summary of Weekly Petroleum Data for the Week Ending December 4, 2015

U.S. crude oil refinery inputs averaged about 16.7 million barrels per day during the
week ending December 4, 2015, 151,000 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 about 9.9 million barrels per day. Distillate
fuel production increased last week, averaging over 5.2 million barrels per day.

U.S. crude oil imports averaged over 8.0 million barrels per day last week, up by 274,000
barrels per day from the previous week. Over the last four weeks, crude oil imports
averaged over 7.5 million barrels per day, remaining unchanged from the same four-week
period last year. Total motor gasoline imports (including both finished gasoline and
gasoline blending components) last week averaged 648,000 barrels per day. Distillate
fuel imports averaged 58,000 barrels per day last week.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum
Reserve) decreased by 3.6 million barrels from the previous week. At 485.9 million
barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at
least the last 80 years. Total motor gasoline inventories increased by 0.8 million barrels
last week, and are in the upper half the upper half of the average range. Finished gasoline
inventories decreased while blending components inventories increased last week.
Distillate fuel inventories increased by 5.0 million barrels last week and are in the upper
half of the average range for this time of year. Propane/propylene inventories fell 3.4
million barrels last week but are well above the upper limit of the average range. Total
commercial petroleum inventories decreased by 3.6 million barrels last week.

Total products supplied over the last four-week period averaged about 19.8 million
barrels per day, down by 0.6% from the same period last year. Over the last four weeks,
motor gasoline product supplied averaged about 9.2 million barrels per day, up by 0.7%
from the same period last year. Distillate fuel product supplied averaged 3.7 million
barrels per day over the last four weeks, down by 1.2% from the same period last year.
Jet fuel product supplied is up 5.5% compared to the same four-week period last year.

http://ir.eia.gov/wpsr/wpsrsummary.pdf

well, we have a bullish inventory report,

dollar way down,

and the shorts just banging away on CL.

go figure.

jim