EIA Reports Mixed Inventory Data - Analyst Blog

The U.S. Energy Department's weekly inventory release showed a sharp fall in crude stockpiles, while refinery run-rates increased significantly from the previous week. Gasoline and distillate stocks, meanwhile, posted a larger-than-expected build.

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 fell by 3,819 thousand barrels for the week ending December 3, 2010, well above analyst expectations. The decrease in oil stocks, the first time in three weeks, can be attributed to ramped-up refinery operations.

However, at 355.9 million barrels, crude supplies are 5.9% above the year-earlier level and remain above the upper limit of the average for this time of the year. The crude supply cover was down slightly from 25.4 days in the previous week to 24.7 days. In the year-ago period, the supply cover was 24.2 days.

Gasoline

Supplies of gasoline rose for the third consecutive week to 214.0 million barrels. The 3,811 thousand barrels jump – the biggest increase since January and much more than  the forecast – came on the back of a rise in production and imports. At 214.0 million barrels, current stockpiles are 1.1% below the year-earlier levels and are near the upper half of the average range.

Distillate

Distillate fuel inventories (including diesel and heating oil) were up by 2,154 thousand barrels last week, trumping forecasts for a modest draw down. The increase in distillate fuel supplies came as production levels rose 188 thousand barrels per day, while imports climbed by 144 thousand barrels per day. At 160.2 million barrels, distillate supplies were 4.2% less than the year-ago level but just above the upper boundary of the average range for this time of the year.

Refinery Rates

Refinery utilization was up 4.9% from the prior week to 87.5%, the highest since the week ended September 17. Analysts were looking for the refinery run rate to increase to 83.5%.

 
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