The DOE/EIA reported that total crude oil and petroleum products stocks slipped -3.90 mmb to 1036.80 mmb in the week ended November 18. Crude stockpile fell -6.22 mmb to 330.82 mmb as stocks slipped in 3 out of 5 PADDs. Cushing stock, however, climbed +0.01 mmb to 32.02 mmb. Utilization rate increased +0.7% to 85.5%.

Gasoline inventory added +4.48 mmb to 209.63 mmb as demand decreased -0.38% to 8.59M bpd while production and imports rose +3.67% and +25.5% respectively. Distillate inventory slid -0.77 mmb to 132.96 mmb although demand plunged -2.86% to 4.07M bpd. Imports jumped +64.63% while production added +0.46% during the week.

Oil plunged after the report as gasoline stock increased for a second consecutive week. Moreover, deterioration in sovereign debt crisis in the Eurozone has triggered selloff of risky assets

Weekly change in inventory as of 18/11/11 ActualChangeConsensusPrevious
Crude oil 330.82 mmb0 mmb+0.50 mmb-1.37 mmb
Gasoline 209.63 mmb+1.15 mmb+1.00 mmb-2.11 mmb
Distillate 132.96 mmb-1.50 mmb-2.20 mmb-6.02 mmb

Comparison between API and EIA reports:

API (Nov 18)

EIA (Nov 18)

Forecast (using API's inventory level)Inventory
Crude oil-5.57 mmb335.74 mmb-1.50 mmb
+1.84mmb341 mmb
Gasoline+5.42 mmb209.57 mmb-1.50 mmb

-2.08 mmb

204 mmb
Distillate-0.89 mmb138.12 mmb-3.0 mmb'
-2.92 mmb139 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