EIA ANALYSIS: Crude stocks build on unseasonal throughputs
New York (Platts)--7Jun2006
US commercial crude stocks continued to build counter-seasonally as
refinery throughputs remain well below year-ago levels, an analysis of data
released Wednesday by the Energy Information Administration showed.
US crude inventories rose 1.1 million barrels in contrast to expectations
for a draw of 400,000 barrels despite inputs edging up 115,000 b/d to 15.634
million b/d. Inputs climbed in every region except PADD III (Gulf Coast) the
result of problems at Valero's 250,000 b/d Port Arthur and 100,000 b/d Corpus
Christie refineries. Crude oil inputs on a four-week moving average of 15.456
million b/d were 422,000 b/d below year-ago levels.
Imports edged up 39,000 b/d to 10.881 million b/d, but on a four-week
moving average were 10.416 million b/d, or 106,000 b/d below year-ago levels.
Refinery snags in PADD III had little effect on gasoline production with
output dipping 71,000 b/d to 9.137 million b/d. Problems at Valero's two Texas
refineries accounted for 70,000 b/d of lost gasoline production, but output in
PADD III was essentially unchanged, suggesting other refiners upped yields.
The largest decline in gasoline production occurred in PADD II (Midwest) where
output fell 150,000 b/d to 2.072 million b/d, what appeared to be a decision
to switch yields to distillate.
The dip in gasoline production combined with a drop in imports caused
stocks to build a less-than-expected 1 million barrels to 210.331 million
barrels. However, gasoline inventories climbed 7.623 million barrels in May
compared to 2.953 million barrels the same month 2005 as exceptionally high
import levels has helped refiners meet a steady pace of demand. Gasoline
demand edged down 63,000 b/d to 9.367 million b/d, and on a four-week moving
average at 9.329 million b/d slowed to 0.7% growth year-over-year from last
week's 0.9%. A quick dip in gasoline demand following Memorial Day weekend is
not unusual as distributors may have been amply supplied to have carryover
from the previous week.
Distillate demand took a bigger hit, falling 126,000 b/d to 4.016 million
b/d, helping to boost stocks by a larger-than-expected 1.8 million b/d. A jump
of 45,000 b/d to 4.109 million b/d in distillate output also lifted
inventories. Production of ultra low sulfur diesel accounted for the entire
rise in distillate production, surging 534,000 b/d to 1.012 million b/d while
output of low sulfur diesel and heating oil dipped. The most noticeable
increase in distillate production was in PADD II where output of ultra low
sulfur diesel rose 155,000 b/d to 274,000 b/d.
The headline numbers this week were bearish as inventories continued to
climb.
--Linda Rafield, linda_rafield@platts.com
For similar news, take a trial to Oilgram Price Report
at http://www.platts.com/Request%20More%20Information/
Copyright © 2005 - Platts
Please visit: www.platts.com
Their coverage of energy matters is extensive!!.