EIA analysis: stocks and output are building againAnalysis of US EIA data: US crude oil stocks jump 8.534 million barrelsNew York - September 19, 2012U.S. crude oil stocks increased 8.534 million barrels in the reporting week that end September 14, according to data released by the U.S. Energy Information Administration (EIA) Wednesday. The build in stocks far outpaced expectations of analysts polled by Platts, who Monday expected a 2.5-million-barrel increase. At 367.626 million barrels, U.S. commercial crude oil stocks are 11.85% above the EIA five-year average. The EIA data reflects the continued return to normal operations of the U.S. Gulf Coast region -- in terms of crude production, imports and refinery operations -- following Hurricane Isaac. Crude oil production in the U.S. lower 48 states, which includes the Gulf of Mexico, rose 755,000 barrels per day (b/d) to 5.817 million b/d. EIA said. Meanwhile, rising imports, which jumped 1.283 million b/d to 9.848 million b/d, more than compensated for a boost in U.S. refinery operations. Gross inputs to U.S. refineries increased 718,000 b/d to 15.312 million b/d, pushing refinery utilization rates 4.2 percentage points higher to 88.9% of capacity. The EIA data shows U.S. imports from Nigeria, Venezuela, Mexico and Brazil all rose last week. Imports from Nigeria, much of which heads to the U.S. Atlantic Coast (USAC), rose 749,000 b/d to 1.077 million b/d. Imports from Venezuela rose 463,000 b/d to 1.195 million b/d; imports from Mexico rose 210,000 b/d to 1.161 million b/d; and imports from Brazil rose 177,000 b/d from zero in the previous week. Much of the bulk of the latter three countries' exports to the U.S. typically heads to the Gulf Coast. Meanwhile, the build in U.S. stocks was centered around the Gulf Coast, where stocks rose 4.758 million barrels to 179.615 million barrels. Imports to the Gulf Coast rose 661,000 b/d to 5.114 million b/d. Gross inputs at Gulf Coast refineries increased 739,000 b/d to 7.688 million b/d, helping refinery run rates to jump 8.5 percentage points to 88.1% of capacity. USAC imports also rose sharply last week, increasing 526,000 b/d to 1.381 million b/d. This helped boost USAC crude stocks, which rose by 3.122 million barrels to 14.08 million barrels, the highest since the week ending December 2009. USAC refinery runs increased sharply as well. Gross inputs were 75,000 b/d higher at 1.082 million b/d, pushing run rates 6.3 percentage points higher to 91.1% of capacity. It is possible that the boost in imports and runs is tied to the restart of the 185,000 b/d Trainer refinery, owned by Delta subsidiary Monroe Energy. U.S. Midwest crude stocks rose 450,000 barrels to 104.483 million barrels despite a 274,000 barrel decline in Cushing, Oklahoma, stocks, which left them at 43.813 million barrels. Cushing is the delivery point for the New York Mercantile Exchange’s (NYMEX) crude oil futures contract. Total implied demand for U.S. products increased 335,000 b/d to 18.334 million b/d, led by a 416,000 b/d increase in distillate supplied, which rose to 3.685 million b/d, EIA said. U.S. GASOLINE, DISTILLATE STOCKS DECLINE U.S. gasoline stocks fell by 1.407 million barrels to 196.309 million barrels, led by a 2.303 million-barrel decline in USAC gasoline stocks. USAC gasoline stocks stood at 47.768 million barrels Friday, EIA said, some 11% below the five-year average, compared with a 7% deficit a week earlier. Analysts polled by Platts expected U.S. gasoline stocks to increase by 1 million barrels during the week that ended September 14. The bulk of the decline was due to a sharp drop in blending component stocks, which fell 2.689 million barrels to 146.061 million barrels, again led by a fall in USAC stocks. USAC blending component stocks dropped 3.040 million barrels to 40.092 million barrels. Meanwhile, U.S. stocks of conventional motor gasoline rose 1.208 million barrels to 50.096 million barrels. U.S. distillate stocks fell 322,000 barrels last week. Analysts expected U.S. distillate stocks to increase by 1 million barrels. At 128.230 million barrels, U.S. distillate stocks are 16.12% below the EIA five-year average. Central Atlantic distillate stocks fell the most, sliding 990,000 barrels to 23.736 million barrels. Approximately two-thirds of the overall distillate stock decline was heating oil inventories, which fell 675,000 barrels to 14.715 million barrels. At 21.776 million barrels, total U.S. heating oil stocks are 38.05% below the EIA five-year average. Central Atlantic ultra low sulfur diesel (ULSD) stocks fell 337,000 barrels to 8.295 million barrels. The region accounts for the largest demand for both USLD and heating oil ahead of the U.S. winter home-heating season. * 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. 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