The US Energy Information Administration (EIA) released its weekly petroleum status report Wednesday. US commercial crude inventories rose by 3.8-M bbls last week, bringing the total US commercial Crude Oil inventory to 364.5-M bbls, above the upper limit of the 5 yr range for this time of the year.

The American Petroleum Institute estimate called for a weekly Crude Oil inventory rise of 5.46-M bbls and an decrease of 2.4-M bls tbo the gasoline supply. Crude Oil price are falling following Wednesday's report from the EIA.

The impact of Hurricane Isaac, which has closed essentially all crude production in the Gulf of Mexico, is also having an impact on Crude Oil prices Wednesday, but the inventory levels indicate that the temporary closures are not likely to have a significant effect on the price of domestic Crude Oil.

Total gasoline inventories decreased by 1.5-M bbls last week and remain in the lower half of the 5 yr average range. Over the last 4 weeks, gasoline supplied has declined by 1% compared to the same period last year. Total motor gasoline supplied averaged 9.1-M BPD for the 4 wks, a drop of 6.2% compared with the same period a year ago.

For the past week, crude imports averaged 9.5-M BPD, an increase of 1.3-M BPD from the prior week. Refineries were running at 91.2% of capacity, with daily input of 15.4-M BPD, down just 58,000 BPD from the prior week.

Distillate inventories, which include diesel fuel, rose by 900,000 bbls last week and are below the lower limit of the average range. Distillate product supplied averaged 3.6-M BPD last week, down 6.2% when compared with the same period last year. Distillate production totaled 4.7-M BPD last week.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.