Total crude oil and petroleum products stocks surged +3.58 mmb to 1101 mmb in the week ended June 25. Utilization rate dipped -1% to 88.4%. Crude oil inventory dropped -2.01 mmb to 363.1 mmb with the biggest draw in the West Coast (-4.34 mmb). Cushing stock fell -0.80 mmb.

Gasoline stockpile increased +0.54 mmb to 218.1 mmb while the market had anticipated a drop of -0.5 mmb. Production rose +1.21% while imports soared +22.2%. These were partly offset by rise in demand which surged +2.39% to 9.46M bpd. Distillate stockpile rose +2.46 mmb to 159.4 mmb. The bigger-than-expected increase was driven by +1.46% increase in production and +7.02% gain in imports. Meanwhile, demand slid -6.18% to 3.55M bpd.

Crude oil prices tumbled after the report as investors were disappointed by oil product stock-builds, especially for distillate. WTI crude oil price slid to 75.52 while Brent crude plunged to 75.4. Heating oil slumped but was able to hold above 2 while gasoline dropped to 2.058 before rebounding to 2.06.

Weekly change in inventory as of 25/06/10
Actual
Change
Market Expectation
Previous

Crude oil
363.1 mmb
-2.01 mmb
-0.90 mmb
+2.02 mmb

Gasoline
218.1 mmb
+0.54 mmb
-0.50 mmb
-0.76 mmb

Distillate
159.4 mmb
+2.46 mmb
+0.80 mmb
+0.30 mmb

Comparison between API and EIA reports:

     

 
 
API (Jun 25)
 
 
EIA (Jun 25 )
 

 
Actual
Inventory
Previous
 
Forecast (using API's inventory level)
Inventory

Crude oil
-3.40 mmb
359.0 mmb
+3.69 mmb
 
-6.12 mmb
359 mmb

Gasoline
-0.91 mmb
220.3 mmb
+0.81 mmb
 
+2.42 mmb
220 mmb

Distillate
+3.90 mmb
158.6 mmb
+1.10 mmb
 
-2.08 mmb
159 mmb

     

API collects stockpile information on a voluntary basis from operators of refineries, 76% of the time, using data in the past 4 years.

Source: Bloomberg, API, EIA