EIA: Oil, Gasoline Stocks Rise - Analyst Blog

The U.S. Energy Department's weekly inventory release showed a surprise climb in crude stockpiles, while distillate supplies posted a smaller-than-expected draw. The agency's report further added that refinery utilization dropped sharply and gasoline inventories climbed last week.   

The Energy Information Administration (“EIA”) Petroleum Status Report – that contains data for the previous week ending on Friday – outlines information regarding the weekly change in petroleum inventories held and produced by the U.S., both locally and abroad. This report provides an overview on the level of reserves and their movements, thereby helping investors to understand the demand/supply dynamics of petroleum products. It is an indicator of current oil prices and volatility that affect businesses of companies engaged in oil and refining industry like ExxonMobil (XOM), Chevron Corp. (CVX), ConocoPhillips (COP), Valero (VLO) and Tesoro (TSO).

Crude Oil

The federal government's EIA reported that crude inventories rose by 1,066 thousand barrels for the week ending November 26, 2010, against expectation of a drop. The increase in oil stocks, the second in as many weeks, can be attributed to curtailed refinery operations.

At 359.7 million barrels, crude supplies are 5.8% above the year-earlier level and remain above the upper limit of the average for this time of the year. The crude supply cover, at 25.4 days, remained unchanged from the previous week. In the year-ago period, the supply cover was 24.5 days.

Gasoline

Supplies of gasoline rose for the second consecutive week, though the increase was less than forecasted. The 561 thousand barrels jump came on the back of a rise in blending components inventories. At 210.2 million barrels, current stockpiles are 1.8% below the year-earlier levels but still remain in the upper half of the average range.

Distillate

Distillate fuel inventories (including diesel and heating oil) were down by 194 thousand barrels last week, less than anticipated. The decrease in distillate fuel supplies reflects a dip in imports and lower production levels. At 158.1 million barrels, distillate supplies were 4.6% less than the year-ago level and just below the upper boundary of the average range for this time of the year.

Refinery Rates

Refinery utilization was down 2.9% from the prior week to 82.6%. Analysts were looking for the refinery run rate to increase to 85.94%.

 
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