According to the DOE/EIA weekly report, total crude oil and petroleum products stocks declined -4.44 mmb to 1053.60 mmb in the week ended March 9. Crude stockpile increased +1.75 mmb to 347.45 mmb as stocks gained in 3 out of 5 PADDs. Cushing stock soared +2.52 mmb to 38.70 mmb. Utilization rate decreased -1.2% to 82.7%.

Gasoline inventory dipped -1.41 mmb to 228.12 mmb although demand decreased +1.85% to 8.42M bpd. Production slipped +2.70% to 8.82M bpd while imports declined -7.64% to 0.58M bpd. Distillate inventory plunged -4.68 mmb to 134.81 mmb as demand rose +8.10% to 3.67M bpd. Imports slipped -17.54% to 0.14M bpd while production dropped -1.75% to 4.15M bpd during the week.

Crude oil dropped after the biggest than expected. The slip in oil prices was also driven by the increase in the US current account deficit to US$ 124B from US$ 110B. The market had anticipated a widening to US$ 114B.

Weekly change in inventory as of 09/03/11
Actual
Change
Consensus
Previous

Crude oil
347.45 mmb
+1.75 mmb
+1.60 mmb
+0.83 mmb

Gasoline
228.12 mmb
-1.41 mmb
-1.00 mmb
-0.40 mmb

Distillate
134.81 mmb
-4.68 mmb
-1.50 mmb
-1.94 mmb

Comparison between API and EIA reports:

API (Mar 9)

EIA (Mar 9)

Actual
Inventory
Previous

Forecast (using API's inventory level)
Inventory

Crude oil
+2.78 mmb
349.27 mmb
+4.58 mmb

+3.57 mmb
349 mmb

Gasoline
-2.14 mmb
226.34 mmb
-2.25 mmb

-3.19 mmb

226 mmb

Distillate
-3.55 mmb
137.46 mmb
+0.92 mmb

+2.05 mmb
137 mmb