Total crude oil and petroleum products stocks declined 4.33 mmb to 1087.95 mmb in the week ended September 2. Crude stockpile fell -3.96 mmb to 353.09 mmb as 3 out of 5 PADDs recorded stock draws. Cushing stock slipped -0.40 mmb to 32.69 mmb. Utilization rate dipped -0.2% to 89.0%.

Gasoline inventory surprisingly rose +0.20 mmb to 208.84 mmb as demand decreased -2.96% to 8.96M bpd. Imports dropped -1.81% to 0.60M bpd while production slipped -4.41% to 9.16M bpd. Distillate inventory added +0.71 mmb to 156.77 mmb as demand plunged -5.70% to 3.85M bpd. Production dropped -3.40% while imports declined -13.6% during the week.

Oil price remained firm after the report. Indeed, the market focus is on President Obama's job stimulus plan. Concerning the dataflow, initially jobless claims unexpectedly rose +5K to 414K in the week ended September 3. Trade deficit in the US narrowed to 44.8B in July from 53.1B in the prior month.

Weekly change in inventory as of 03/09/11 ActualChangeConsensusPrevious
Crude oil 353.09 mmb-3.96 mmb-2.00 mmb+5.28 mmb
Gasoline 208.84 mmb+0.20 mmb-1.40 mmb-2.80 mmb
Distillate 156.77 mmb+0.71 mmb+0.50 mmb+0.36 mmb

Comparison between API and EIA reports:

API (Sep 3) EIA (Sep 3)
ActualInventoryPreviousForecast (using API's inventory level)Inventory
Crude oil-2.97 mmb349.21 mmb+5.13 mmb-7.85 mmb349 mmb
Gasoline-0.87 mmb209.93 mmb-3.11 mmb

+1.29 mmb

210 mmb
Distillate+3.95 mmb157.06 mmb+0.28 mmb+1.00 mmb157 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