Markets

Crude Inventory Unexpectedly Rose Last Week

Total crude oil and petroleum products stocks increased +4.35 mmb to 1092.3 mmb in the week ended August 26. Crude stockpile unexpectedly increased +5.28 mmb to 357.05 mmb as 4 out of 5 PADDs recorded stock-builds. Cushing stock slipped -0.58 mmb to 33.09 mmb. Utilization rate dipped -1.1% to 89.2%.

Gasoline inventory fell -2.80 mmb to 208.64 mmb as demand increased +2.44% to 9.23M bpd and imports dropped -31.99% to 0.61M bpd. Production, however, climbed +2.58% 5o 9.58M bpd. Distillate inventory climbed +0.36 mmb to 156.06 mmb although demand soared +6.13% to 4.07M bpd. Production increased +0.56% while imports added 9.32% during the week.

Oil prices slid to as low as 88.57 shortly after the report as crude inventory surprisingly increased. Losses were erased soon as factory orders unexpectedly grew +2.4% in July after contracting -0.8% a month ago.

Weekly change in inventory as of 26/08/11 Actual Change Consensus Previous
Crude oil 357.05 mmb +5.28 mmb -0.50 mmb -2.21 mmb
Gasoline 208.64 mmb -2.80 mmb -0.95 mmb +1.36 mmb
Distillate 156.06 mmb +0.36 mmb +0.90 mmb +1.73 mmb

Comparison between API and EIA reports:

API (Aug 26) EIA (Aug 26)
Actual Inventory Previous Forecast (using API's inventory level) Inventory
Crude oil +5.13 mmb 352.18 mmb -3.34 mmb +0.41 mmb 352 mmb
Gasoline -3.11 mmb 210.80 mmb +6.37 mmb -0.34 mmb 211 mmb
Distillate +0.28 mmb 153.11 mmb +2.00 mmb -2.59 mmb 153 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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