Analysis of US EIA data: US crude oil stocks rose 3.778 million barrels


New York - August 29, 2012


U.S. commercial crude oil stocks increased by 3.778 million barrels to 364.524 million barrels during the reporting week ended August 24, according to data released Wednesday by the U.S. Energy Information Administration (EIA).


The build is counter to a 2-million-barrel decline in crude stocks expected by analysts polled by Platts on Monday. However, it is in line, although smaller, with the near 5.5-million-barrel increase in crude stocks reported by the American Petroleum Institute (API) Tuesday.


The build reported by EIA Wednesday comes as crude oil imports to the U.S. rose 1.288 million barrels per day (b/d) to 9.495 million b/d during the reporting week, led by a 944,000 b/d increase in US Gulf Coast imports. Gulf Coast imports rose to 4.981 million b/d.


The EIA also reported that gross inputs to U.S. refineries were nearly flat, up 6,000 b/d to 15.717 million b/d, keeping total U.S. refinery utilization rates level at 91.2% of capacity. Analysts polled by Platts Monday expected run rates to decline slightly by 0.25 percentage points.


Thanks to the boost in U.S. Gulf Coast imports, Gulf Coast crude oil stocks led the overall increase, up 3.175 million barrels to 181.385 million barrels.


Gross inputs to Gulf Coast refineries rose 73,000 b/d to 7.975 million b/d, pushing run rates 0.8 percentage point higher at 91.4% of capacity.


U.S. Atlantic Coast stocks rose 940,000 barrels to 10.990 million barrels, the highest since the week ending June 15, despite a 68,000 b/d decline in imports, which fell to 831,000 b/d.


U.S. Midwest stocks fell 649,000 barrels to 103.783 million barrels, according to EIA data. This was led by a 421,000-barrel decline in stocks at Cushing, Oklahoma – the transit and delivery hub for the New York Mercantile Exchange (NYMEX) crude oil futures contract – which fell to 44.821 million barrels last week.


And while U.S. implied demand* for oil increased 369,000 b/d to 19.116 million b/d, the gains were mainly seen in residual fuel oil supplied, which rose 304,000 b/d to 491,000 b/d. Total implied demand for gasoline fell 17,000 b/d to 9.064 million b/d last week, and total implied demand distillate supplied was near flat, up 2,000 b/d to 3.563 million b/d.


But, on a four-week moving average, U.S. implied demand was flat and implied demand for gasoline rose 61,000 b/d to 9.073 million b/d.


U.S. GASOLINE STOCKS DROP


Meanwhile, U.S. gasoline stocks fell 1.509 million barrels to 201.227 million barrels last week, just shy of analysts' expectations of a 2-million-barrel decline, according to Platts' survey conducted Monday.


The declines were felt mostly on the U.S. Gulf Coast, where gasoline stocks fell 1.263 million barrels to 68.908 million barrels.


Midwest gasoline stocks fell 1.068 million barrels to 48.393 million barrels, while Atlantic Coast stocks fell 112,000 barrels to 49.463 million barrels.


U.S. distillates inventories rose 873,000 barrels to 126.083 million barrels, the highest reported level since the week ending April 13.


The build in distillates was expected by analysts as the U.S. prepares to ready supplies ahead of the upcoming winter season. It was led by a 1.559 million- barrel increase in Midwest stocks, which rose to 28.915 million barrels.


Atlantic Coast stocks rose 1.169 million barrels to 43.187 million barrels, again the highest since the week ending April 13.


The gains were offset somewhat by a 1.555 million-barrel decline in Gulf Coast distillate stocks, which fell to 28.915 million barrels last week, according to the EIA data Wednesday.


* Implied demand is the amount of product that moves through the U.S. distribution system, not actual end consumption.


# # #


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.


About The McGraw-Hill Companies: McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial's leading brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at www.mcgraw-hill.com.

 

Creative Commons License

To subscribe or visit go to:  http://www.platts.com