Total crude oil and petroleum products stocks increased +4.35 mmb to 1092.3 mmb in the week ended August 26. Crude stockpile unexpectedly increased +5.28 mmb to 357.05 mmb as 4 out of 5 PADDs recorded stock-builds. Cushing stock slipped -0.58 mmb to 33.09 mmb. Utilization rate dipped -1.1% to 89.2%.

Gasoline inventory fell -2.80 mmb to 208.64 mmb as demand increased +2.44% to 9.23M bpd and imports dropped -31.99% to 0.61M bpd. Production, however, climbed +2.58% 5o 9.58M bpd. Distillate inventory climbed +0.36 mmb to 156.06 mmb although demand soared +6.13% to 4.07M bpd. Production increased +0.56% while imports added 9.32% during the week.

Oil prices slid to as low as 88.57 shortly after the report as crude inventory surprisingly increased. Losses were erased soon as factory orders unexpectedly grew +2.4% in July after contracting -0.8% a month ago.

Weekly change in inventory as of 26/08/11 ActualChangeConsensusPrevious
Crude oil 357.05 mmb+5.28 mmb-0.50 mmb-2.21 mmb
Gasoline 208.64 mmb-2.80 mmb-0.95 mmb+1.36 mmb
Distillate 156.06 mmb+0.36 mmb+0.90 mmb+1.73 mmb

Comparison between API and EIA reports:

API (Aug 26) EIA (Aug 26)
ActualInventoryPreviousForecast (using API's inventory level)Inventory
Crude oil+5.13 mmb352.18 mmb-3.34 mmb+0.41 mmb352 mmb
Gasoline-3.11 mmb210.80 mmb+6.37 mmb

-0.34 mmb

211 mmb
Distillate+0.28 mmb153.11 mmb+2.00 mmb-2.59 mmb153 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