API ANALYSIS: US crude stocks drop in steep, but seasonal, decline
New York (Platts)--4Jan2011/534 pm EST/2234 GMT
US crude stocks dropped a steep 7.511 million barrels to 337.057
million barrels with a sharp decline in imports contributing to the
inventory draw the week ending December 31, an analysis of the oil data
released Tuesday by the American Petroleum Institute showed.
At 337.057 million barrels, US crude stocks were 8.156 million barrels
above year-ago levels.
Crude imports plunged 866,000 b/d to 8.397 million b/d, a fairly
seasonal occurrence as tankers sit out at sea for tax-related purposes.
Nearly all the decline in crude imports occurred on the Gulf Coast where
imports plummeted 934,000 b/d to 4.548 million b/d. Partially offsetting
the drop in Gulf Coast crude imports was a 228,000-barrel increase in
West Coast imports to 1.171 million b/d.
Despite the increase in West Coast crude imports, stocks in that region
declined 2.862 million barrels to 52.4 million barrels, while
inventories on the Gulf Coast dropped 1.723 million barrels to 161.493
million barrels. Crude inventories on the Atlantic Coast fell 2.992
million barrels to just 8.527 million barrels.
While total US crude stocks fell, inventories at Cushing, Oklahoma --
home of the NYMEX delivery point -- increased 353,000 barrels to 37.137
million barrels, inching towards all-time highs.
The product stock data was no less eye-catching than the crude. Gasoline
stocks climbed 5.612 million barrels to 221.986 million barrels, a
result of a sharp dropoff in demand, while inventories of middle
distillates rose a counter-seasonal 2.162 million barrels to 164.943
million barrels.
The build in gasoline stocks was across-the-board, with Gulf Coast
inventories seeing the largest build of 3.063 million barrels to 79.608
million barrels.
Gasoline demand fell 555,000 b/d to 8.82 million b/d, probably
reflecting winter storms across the Midwest and along the Atlantic
Coast. Demand for middle distillates declined 221,000 b/d to 4.038
million b/d, with consumption of both ULSD and heating oil lower
week-over-week.
While imports of gasoline were higher, up 123,000 b/d to 603,000 b/d,
imports of middle distillates were down 36,000 b/d to 128,000 b/d.
While a majority of the gasoline stock-build was along the Gulf Coast,
the largest share of the inventory increase in middle distillates was in
the Midwest. But there was a 1.47 million barrels draw in heating oil
stocks on the Gulf Coast from a revised 6.538 million barrels the
previous week, suggesting the product is in Colonial Pipeline and moving
up the Atlantic Coast or being exported.
--Linda Rafield,
linda_rafield@platts.com
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