Markets

Crude Inventory Fell More than Expected

Total crude oil and petroleum products stocks declined 4.33 mmb to 1087.95 mmb in the week ended September 2. Crude stockpile fell -3.96 mmb to 353.09 mmb as 3 out of 5 PADDs recorded stock draws. Cushing stock slipped -0.40 mmb to 32.69 mmb. Utilization rate dipped -0.2% to 89.0%.

Gasoline inventory surprisingly rose +0.20 mmb to 208.84 mmb as demand decreased -2.96% to 8.96M bpd. Imports dropped -1.81% to 0.60M bpd while production slipped -4.41% to 9.16M bpd. Distillate inventory added +0.71 mmb to 156.77 mmb as demand plunged -5.70% to 3.85M bpd. Production dropped -3.40% while imports declined -13.6% during the week.

Oil price remained firm after the report. Indeed, the market focus is on President Obama's job stimulus plan. Concerning the dataflow, initially jobless claims unexpectedly rose +5K to 414K in the week ended September 3. Trade deficit in the US narrowed to 44.8B in July from 53.1B in the prior month.

Weekly change in inventory as of 03/09/11 Actual Change Consensus Previous
Crude oil 353.09 mmb -3.96 mmb -2.00 mmb +5.28 mmb
Gasoline 208.84 mmb +0.20 mmb -1.40 mmb -2.80 mmb
Distillate 156.77 mmb +0.71 mmb +0.50 mmb +0.36 mmb

Comparison between API and EIA reports:

API (Sep 3) EIA (Sep 3)
Actual Inventory Previous Forecast (using API's inventory level) Inventory
Crude oil -2.97 mmb 349.21 mmb +5.13 mmb -7.85 mmb 349 mmb
Gasoline -0.87 mmb 209.93 mmb -3.11 mmb +1.29 mmb 210 mmb
Distillate +3.95 mmb 157.06 mmb +0.28 mmb +1.00 mmb 157 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

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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