Oil Storage Report - April 16

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U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 6.6 million barrels from the previous week. At 536.5 million barrels, U.S. crude oil inventories are at historically high levels for this time of year. Total motor gasoline inventories decreased by 4.2 million barrels last week, but are well above the upper limit of the average range. Both finished gasoline inventories and blending components inventories decreased last week. Distillate fuel inventories increased by 0.5 million barrels last week and are well above the upper limit of the average range for this time of year. Propane/propylene inventories rose 2.8 million barrels last week and are above the upper limit of the average range. Total commercial petroleum inventories increased by 6.9 million barrels last week.

U.S. crude oil refinery inputs averaged over 15.9 million barrels per day during the week ending April 8, 2016, 492,000 barrels per day less than the previous week’s average. Refineries operated at 89.2% of their operable capacity last week. Gasoline production decreased last week, averaging about 9.6 million barrels per day. Distillate fuel production decreased last week, averaging 4.8 million barrels per day.

U.S. crude oil imports averaged over 7.9 million barrels per day last week, up by 686,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged over 7.8 million barrels per day, 4.1% above the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 570,000 barrels per day. Distillate fuel imports averaged 175,000 barrels per day last week.

Total refined products supplied over the last four-week period averaged 19.7 million barrels per day, up by 3.2% from the same period last year. Over the last four weeks, motor gasoline product supplied averaged 9.4 million barrels per day, up by 5.7% from the same period last year. Distillate fuel product supplied averaged about 3.7 million barrels per day over the last four weeks, down by 7.1% from the same period last year. Jet fuel product supplied remained unchanged compared to the same four-week period last year.

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Oil prices dropped on the initial report, but a recovery in oil prices later ensued after the Energy Information Administration reported that crude inventories had increased by 6.6 million barrels, much higher than 1.85 million barrel build expected by analysts.

To explain the price move, some experts pointed to 4.2 million barrel decline in gasoline inventories, compared to the drop of 1.4 million expected by analysts. Also of note, the Cushing crude oil inventories, representing the major delivery point for West Texas, slumped by 1.77 million barrels.

Oil may be getting a boost from this: Chinese exports rose for the first time in nine months with an 11.5% jump that blew past consensus expectations for a 2.5% increase. The data provided signs that the slowdown in the world’s second largest economy may not be as deep as investors feared.