The DOE/EIA reported that total crude oil and petroleum products stocks plummeted -18.17 mmb to 1037.82 mmb in the week ended December 16. Crude stockpile declined -10.57 mmb to 323.58 mmb as stocks in PADD 3 and PADD 5 slumped -6.93 mmb and -4.56 mmb respectively. Cushing stock dropped -0.99 mmb to 30.20 mmb. Utilization rate increased -2.80% to 87.7%.
Gasoline inventory dropped -0.41 mmb to 218.41 mmb as demand climbed +0.83% to 8.72 M bpd. Production and imports also dropped -1.61% and -22.55% respectively. Distillate inventory plunged -2.35 mmb to 139.15 mmb as demand jumped for the first time in 5 weeks, by +2.16%, to 3.88M bpd. Imports and production increased +0.64% and +8.47% respectively during the week.
Crude oil prices continued to rise higher with the front-month contract for WTI crude oil rising to as high as 99.25. The decline in oil inventories should lend further support to the rally in the near-term.
|Weekly change in inventory as of 16/12/11||Actual||Change||Consensus||Previous|
|Crude oil||323.58 mmb||-10.57 mmb||-1.25 mmb||-1.93 mmb|
|Gasoline||218.41 mmb||-0.41 mmb||+0.15 mmb||+3.82 mmb|
|Distillate||139.15 mmb||-2.35 mmb||-0.75 mmb||+0.48 mmb|
Comparison between API and EIA reports:
|API (Dec 16)||EIA (Dec 16)|
|Actual||Inventory||Previous||Forecast (using API's inventory level)||Inventory|
|Crude oil||+0.46 mmb||334.60 mmb||+0.46 mmb||+8.36mmb||339mmb|
|Gasoline||-0.39 mmb||215.35 mmb||-0.01 mmb||-0.24 mmb||209 mmb|
|Distillate||-2.78 mmb||142.38 mmb||+1.24mmb||+6.50 mmb||139 mmb|
API collects stockpile information on a voluntary basis from operators of refineries. Data from the API and DOE have moved in the same direction 71% of the time over the past 52 weeks
Source: Bloomberg, API, EIA