Broadbased Decline in Oil Inventories Sends Prices Higher

The DOE/EIA reported that total crude oil and petroleum products stocks plummeted -18.17 mmb to 1037.82 mmb in the week ended December 16. Crude stockpile declined -10.57 mmb to 323.58 mmb as stocks in PADD 3 and PADD 5 slumped -6.93 mmb and -4.56 mmb respectively. Cushing stock dropped -0.99 mmb to 30.20 mmb. Utilization rate increased -2.80% to 87.7%.

Gasoline inventory dropped -0.41 mmb to 218.41 mmb as demand climbed +0.83% to 8.72 M bpd. Production and imports also dropped -1.61% and -22.55% respectively. Distillate inventory plunged -2.35 mmb to 139.15 mmb as demand jumped for the first time in 5 weeks, by +2.16%, to 3.88M bpd. Imports and production increased +0.64% and +8.47% respectively during the week.

Crude oil prices continued to rise higher with the front-month contract for WTI crude oil rising to as high as 99.25. The decline in oil inventories should lend further support to the rally in the near-term.

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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