Analysis of EIA data: US crude oil stocks draw 3.438 million barrels as imports plungeNew York - January 19, 2012US crude oil stocks fell 3.438 million barrels to 331.209 million barrels the week that ended January 13, as imports sharply declined amid a moderate rise in petroleum product demand, data released by the U.S. Energy Information Administration (EIA) showed Thursday. Analysts polled by Platts estimated a 2.6-million-barrel build in crude stocks based on historical trends, but the figure was more in line with data reported late Wednesday by the American Petroleum Institute (API), which showed a 4.809-million-barrel drop in stocks. The EIA’s reported bulk of the draw in stocks occured in the US Gulf Coast (USGC) region, where inventories fell 4.5 million barrels for the reporting week ending January 13. On the US Atlantic Coast (USAC), crude stocks rose 800,000 barrels, while other regions of the country posted minimal builds of around 100,000 barrels each in the Rockies and US West Coast (USWC). Midwest crude inventories were nearly flat at 92.7 million, 12.895 million barrels above the five-year average. Crude stocks at Cushing, Oklahoma – delivery point for New York Mercantile Exchange's (NYMEX) crude oil futures contracts – declined for the fifth consecutive week to 28.273 million barrels. Down 832,000 barrels from the prior week, this is lowest level Cushing stocks have seen since November 6, 2009. Stocks are just below the five-year average of 28.908 million barrels. A large drop-off in crude imports of around 1.6 million barrels per day (b/d) to 8.265 million b/d had a major impact on the crude stock level, while total petroleum demand edged slightly higher by 91,000 b/d to 17.902 million b/d. The decline in imports comes after it surged some 883,000 b/d during the first week of the New Year. Analysts said refiners hold back on importing crude in December, mainly due to tax reasons, so a surge is expected during the first week of January, although it normally tapers off in the following weeks. Refiners reduced crude inputs to distillation units by 352,000 b/d to 14.585 million b/d, while utilization also fell, down by 1.9 percentage points to 83.7% of capacity. Inputs are about 100,000 b/d more than the five-year average. US gasoline stocks rose 3.717 million barrels to 227.520 million barrels, just above expectations of a 3-million-barrel increase but less-than API data that showed a 4.309 million-barrel build. A drop in demand for gasoline, down 182,000 b/d to 7.996 million b/d last week, was 842,000 b/d below the five-year average and some 8.2% below year-ago levels. The demand decline coupled with a 109,000 b/d increase in gasoline imports to 553,000 b/d, which sent inventories higher. In the USAC – home of the New York delivery point for NYMEX RBOB – gasoline stocks rose 1.1 million barrels, while stocks in the USWC also rose, up by 1.3 million barrels. Distillate stocks rose 438,000 barrels to 148.001 million barrels last week, EIA data showed, as demand rose 357,000 b/d to 3.635 million b/d. Analysts expected a 1.4-million-barrel rise in distillate inventories. EIA data ran counter the API, which showed a 900,000-barrel drop in distillate stocks. Despite the weekly growth in distillate demand, it is 307,000 b/d below the five-year average. A 3-million-barrel rise in distillate stocks in the Midwest was offset by a 600,000-barrel decline in the USAC and a 2-million-barrel drop in the USGC. Within distillates, heating oil stocks declined 2.3 million barrels to 33.3 million barrels, while inventories of ultra low sulfur diesel fell 3.4 million barrels last week, EIA data showed. # # # About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals and metals information and a premier source of benchmark prices for those markets. Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency. Customers in 150 countries benefit from Platts’ coverage of the oil, petrochemicals, natural gas, electricity,coal, nuclear power, shipping, and metals markets. A division of The McGraw-Hill Companies, Platts has approximately 900 employees in more than 15 offices worldwide.
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