Crude inventory drew -5.91 mmb, compared with consensus of a -1.6 mmb drop, to 337.5 mmb for the week ended Sep 4, according to the US Energy Department. Cushing stock was largely unchanged from the prior week. Similar to what was indicated in the API report, both gasoline and distillate stockpiles increased during the week. Halting 6 consecutive weekly declines, gasoline stockpile rose +2.07 mmb to 207.2 mmb. This was very disappointing as the market forecast it to draw -1.5 mmb. End of driving season has obviously affected fuel demand. Distillate inventory gained almost +2 mmb, bring storage to 165.6 mmb.

WTI crude oil price plummets more than $1 to 71.02. Both RBOB gasoline and heating oil sink -2.5% and -1.6% to 1.785 and 1.773 respectively.

US Oil Inventory

Weekly change in inventory as of 04/09/09 ActualChangeMarket Expectation Previous
Crude oil 337.5 mmb-5.91 mmb-1.60 mmb-0.37 mmb
Gasoline 207.2 mmb+2.07 mmb-1.50mmb-2.97 mmb
Distillate 165.6 mmb+1.99 mmb+0.88 mmb+1.18 mmb

Comparison between API and EIA reports:

     

  API (Sep 4)   EIA (Sep 4)  
 ActualInventoryPrevious Forecast (using API's inventory level)Inventory
Crude oil-7.22 mmb336.3 mmb-3.19 mmb -7.39 mmb336 mmb
Gasoline+0.57 mmb207.5 mmb-2.81 mmb +2.42mmb208 mmb
Distillate+3.28 mmb165.1 mmb+0.92 mmb +1.54 mmb165 mmb
     

API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department (EIA)for its weekly survey. Oil inventories from the API and EIA moved in the same direction for over 70% of the time, using data in the past 4 years.

Source: Bloomberg, API, EIA

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