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 ActualChangeConsensusPrevious
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) 
 ActualInventoryPrevious Forecast (using API's inventory level)Inventory
Crude oil+0.46 mmb334.60 mmb+0.46 mmb +8.36mmb339mmb
Gasoline-0.39 mmb215.35 mmb-0.01 mmb -0.24 mmb209 mmb
Distillate-2.78 mmb142.38 mmb+1.24mmb +6.50 mmb139 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

/

/

/

/