Oil Storage Report - March 23
Posted: Wed Mar 23, 2016 10:36 am
The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 9.4 million barrels in the week ended March 18. Market analysts' expected a crude-stock rise of 3.0 million barrels, while the American Petroleum Institute late Tuesday reported a supply gain of 8.8 million barrels.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, fell by 1.258 barrels last week, the EIA said.
Total U.S. crude oil inventories stood at an all-time high of 532.5 million barrels as of last week, underlining concerns over a domestic supply glut.
The report also showed that gasoline inventories decreased by 4.6 million barrels, compared to expectations for a drop of 1.5 million barrels, while distillate stockpiles rose by 0.9 million barrels.
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My Take: We are only a few weeks away from a spike in gasoline and diesel demand. It happen each year. Refiners are taking as much of the cheap crude oil they can get because they know oil prices will be higher this summer. Crude oil inventory is not building because our production is going up. It is building because we are importing more. Refiners will soon be drawing a lot more crude oil from inventory to ramp up production of summer blend gasoline.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, fell by 1.258 barrels last week, the EIA said.
Total U.S. crude oil inventories stood at an all-time high of 532.5 million barrels as of last week, underlining concerns over a domestic supply glut.
The report also showed that gasoline inventories decreased by 4.6 million barrels, compared to expectations for a drop of 1.5 million barrels, while distillate stockpiles rose by 0.9 million barrels.
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My Take: We are only a few weeks away from a spike in gasoline and diesel demand. It happen each year. Refiners are taking as much of the cheap crude oil they can get because they know oil prices will be higher this summer. Crude oil inventory is not building because our production is going up. It is building because we are importing more. Refiners will soon be drawing a lot more crude oil from inventory to ramp up production of summer blend gasoline.