Total crude oil and petroleum products stocks jumped +6.10 mmb to 1124.5 mmb in the week ended July 30. The 8th consecutive weekly gain has pushed total crude and oil products inventories to the highest level since September 1990. Crude oil inventory declined -2.78 mmb to 358 mmb as led -3.76 mmb fall in the Gulf Coast and a -2.48 mmb drop in the East Coast. The West Coast, however, recorded +3.00 mmb increase in stockpile and offset some of draws. Cushing stock increased for a 4th straight week to 37.8 mmb. Utilization rate climbed to 91.2% after falling to 90.6 in the prior week. Utilization rate reached a 3-year high of 91.5% in the week ended July 16.

Concerning oil products, gasoline stockpile added +0.73 mmb to 223 mmb while the market had anticipated a dip of -1.00 mmb. Production slipped -2.42% to 9.42M bpd but imports soared +14.0% to 1.23M bpd. Meanwhile, Although demand fell -1.61% to 9.48M bpd. Distillate stockpile rose +2.17 mmb to 169.7 mmb as demand contracted +-3.75% to 3.46M bpd. Imports and production also gained +25.5% and +0.07% respectively..

The front-month WTI contract changed little after the report. Price climbed to as high as 82.85 as ISM services index surprisingly improved July and ADP's survey indicated more addition of payrolls than previously anticipated.

Weekly change in inventory as of 30/07/10 ActualChangeMarket Expectation Previous
Crude oil 358.0 mmb-2.78 mmb-1.50 mmb+7.31 mmb
Gasoline 223.0 mmb+0.73 mmb-1.00 mmb+0.09 mmb
Distillate 169.7 mmb+2.17 mmb+1.00 mmb+0.94 mmb

Comparison between API and EIA reports:

API (Jul 30)

EIA (Jul 30 )

Forecast (using API's inventory level)Inventory
Crude oil-0.78 mmb355.6 mmb+3.08 mmb


356 mmb
Gasoline+2.30 mmb224.6 mmb+0.88 mmb
+2.33 mmb225 mmb
Distillate+1.10 mmb166.4 mmb+0.41 mmb
-4.15 mmb166 mmb

API collects stockpile information on a voluntary basis from operators of refineries, 76% of the time, using data in the past 4 years.  

Source: Bloomberg, API, EIA