WTI crude oil remained lower, marginally paring back on some pre-inventory losses following the report from the government. The EIA reported an inventory build that was less than what had been shown by the API last night, but more than expectations from earlier estimates. Gasoline and distillate stocks withdrew by more than what was expected despite a strong push from refiners to ramp up output.
*Important Disclaimer: Beginning ON 10/13/16 the EIA will no longer include crude oil lease stocks in U.S. total commercial crude oil inventory data. Crude oil lease stocks refer to oil (currently about 31 million barrels) that is stored in tanks at sites across the United States where producers are drilling on leased land. Lease stocks are not yet available for commercial use, and in many cases, operators do not count them as production until the oil is transferred off the lease.
HIGHLIGHTS:
Crude oil inventories increased by 2.4 million barrels.
Gasoline inventories decreased by 2.8 million barrels.
Distillate inventories decreased by 1.9 million barrels.
Net imports decreased by 1.56 million barrels per day.
After last week's dramatic increase in crude oil inventories, this week shows a rather small build along with a decline in refined products, driven mostly by lower imports. Domestic production, on the other hand, jumped by a very large number.
See previous crude oil reports ( here).
SUMMARY:
U.S. crude oil refinery inputs averaged over 15.8 million barrels per day during the week ending November 4, 2016, 369,000 barrels per day more than the previous week’s average. Refineries operated at 87.1% of their operable capacity last week. Gasoline production increased slightly last week, averaging about 10.5 million barrels per day. Distillate fuel production increased last week, averaging 4.8 million barrels per day.
U.S. crude oil imports averaged over 7.4 million barrels per day last week, down by about 1.6 million barrels per day from the previous week. Over the last four weeks, crude oil imports averaged 7.6 million barrels per day, 5.3% above the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 500,000 barrels per day. Distillate fuel imports averaged 107,000 barrels per day last week.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.4 million barrels from the previous week. At 485.0 million barrels, U.S. crude oil inventories are near the upper limit of the average range for this time of year. Total motor gasoline inventories decreased by 2.8 million barrels last week, but are well above the upper limit of the average range. Finished gasoline inventories increased while blending components inventories decreased last week. Distillate fuel inventories decreased by 1.9 million barrels last week but are well above the upper limit of the average range for this time of year. Propane/propylene inventories fell 1.3 million barrels last week but are near the upper limit of the average range. Total commercial petroleum inventories decreased by 7.0 million barrels last week.
Total products supplied over the last four-week period averaged about 20.1 million barrels per day, up by 1.5% from the same period last year. Over the last four weeks, motor gasoline product supplied averaged 9.1 million barrels per day, down by 2.1% from the same period last year. Distillate fuel product supplied averaged above 4.0 million barrels per day over the last four weeks, up by 1.0% from the same period last year. Jet fuel product supplied is up 5.1% compared to the same four-week period last year.
Complete report ( here )
