EIA's Weekly Crude Inventory Report 9-8-16
WTI crude oil futures added onto earlier gains this morning after the EIA reported a massive draw in inventory, even more than the API’s shockingly high decrease yesterday afternoon. The substantial draw in crude oil inventory that U.S. industry data showed reflected the impact of an Atlantic storm that shut down rigs in the Gulf. Gasoline inventories also saw a larger-than-expected draw from crude oil while distillates saw a build that was bigger than forecasted as refiners hiked output.
Market responded by driving prices 1.5% higher:
Analysts were looking for a 200,000 barrel increase in crude stocks vs the news they fell by 12.1million barrels
(This drove up international benchmark Brent crude by 49 cents to $48.27. The October West Texas Intermediate or Light Crude was up 56 cents at $46.06 a barrel.)
The main reason for the drawdown according to the EIA, was the shutdown of refineries in the Gulf of Mexico due to Hurricane Hermine. The estimates were 11.5 percent of Gulf output was shut down from Hermine.
See last weeks report ( here).
U.S. crude oil refinery inputs averaged over 16.9 million barrels per day during the week ending September 2, 2016, 315,000 barrels per day more than the previous week’s average. Refineries operated at 93.7% of their operable capacity last week. Gasoline production increased last week, averaging about 10.2 million barrels per day. Distillate fuel production increased last week, averaging over 5.0 million barrels per day.
U.S. crude oil imports averaged about 7.1 million barrels per day last week, down by 1.8 million barrels per day from the previous week. Over the last four weeks, crude oil imports averaged 8.2 million barrels per day, 7.4% above the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 607,000 barrels per day. Distillate fuel imports averaged 108,000 barrels per day last week.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 14.5 million barrels from the previous week. At 511.4 million barrels, U.S. crude oil inventories are at historically high levels for this time of year. Total motor gasoline inventories decreased by 4.2 million barrels last week, but are well above the upper limit of the average range. Both finished gasoline inventories and blending components inventories decreased last week. Distillate fuel inventories increased by 3.4 million barrels last week and are above the upper limit of the average range for this time of year. Propane/propylene inventories rose 0.6 million barrels last week and are above the upper limit of the average range. Total commercial petroleum inventories decreased by 13.7 million barrels last week.
Total products supplied over the last four-week period averaged 20.7 million barrels per day, up by 2.4% from the same period last year. Over the last four weeks, motor gasoline product supplied averaged over 9.6 million barrels per day, up by 3.2% from the same period last year. Distillate fuel product supplied averaged 3.7 million barrels per day over the last four weeks, down by 0.1% from the same period last year. Jet fuel product supplied is up 6.1% compared to the same four-week period last year.
Complete report ( here )