U.S. business crude oil inventories, excluding these within the Strategic Petroleum Reserve (SPR), decreased by a million barrels from the week ending October 10 to the week ending October 17.
That’s what the U.S. Vitality Data Administration (EIA) highlighted in its newest weekly petroleum standing report, which was launched on October 22 and included information for the week ending October 17.
In that report, the EIA confirmed that crude oil shares, not together with the SPR, stood at 422.8 million barrels on October 17, 423.8 million barrels on October 10, and 426.0 million barrels on October 18, 2024. Crude oil within the SPR stood at 408.6 million barrels on October 17, 407.7 million barrels on October 10, and 384.6 million barrels on October 18, 2024, the report revealed.
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Complete petroleum shares – together with crude oil, whole motor gasoline, gas ethanol, kerosene sort jet gas, distillate gas oil, residual gas oil, propane/propylene, and different oils – stood at 1.693 billion barrels on October 17, the report highlighted. Complete petroleum shares had been down 3.4 million barrels week on week and up 50.7 million barrels yr on yr, the report confirmed
“At 422.8 million barrels, U.S. crude oil inventories are about 4 p.c beneath the 5 yr common for this time of yr,” the EIA stated in its newest weekly petroleum standing report.
“Complete motor gasoline inventories decreased by 2.1 million barrels from final week and are barely beneath the 5 yr common for this time of yr. Completed gasoline inventories elevated and mixing elements inventories decreased final week,” it added.
“Distillate gas inventories decreased by 1.5 million barrels final week and are about seven p.c beneath the 5 yr common for this time of yr. Propane/propylene inventories elevated by 0.8 million barrels from final week and are 12 p.c above the 5 yr common for this time of yr,” it continued.
U.S. crude oil refinery inputs averaged 15.7 million barrels per day in the course of the week ending October 17, in keeping with the EIA report, which outlined that this was 601,000 barrels per day greater than the earlier week’s common.
“Refineries operated at 88.6 p.c of their operable capability final week,” the EIA stated within the report.
“Gasoline manufacturing elevated final week, averaging 9.6 million barrels per day. Distillate gas manufacturing elevated by 40,000 barrels per day final week, averaging 4.6 million barrels per day,” it added.
U.S. crude oil imports averaged 5.9 million barrels per day final week, the report famous. This was a rise of 393,000 barrels per day from the earlier week, the EIA highlighted within the report.
“Over the previous 4 weeks, crude oil imports averaged about 5.9 million barrels per day, 4.6 p.c lower than the identical four-week interval final yr,” the EIA stated.
“Complete motor gasoline imports (together with each completed gasoline and gasoline mixing elements) final week averaged 505,000 barrels per day, and distillate gas imports averaged 76,000 barrels per day,” it added.
Complete merchandise provided during the last four-week interval averaged 20.5 million barrels a day, down by 0.1 p.c from the identical interval final yr, the EIA acknowledged in its newest weekly petroleum standing report.
“Over the previous 4 weeks, motor gasoline product provided averaged 8.6 million barrels a day, down by 3.6 p.c from the identical because the final yr interval,” it added.
“Distillate gas product provided averaged 4.0 million barrels a day over the previous 4 weeks, up by 0.2 p.c from the identical interval final yr. Jet gas product provided was down 0.1 p.c in contrast with the identical four-week interval final yr,” the EIA continued.
Analyst Take
In a Skandinaviska Enskilda Banken AB (SEB) report despatched to Rigzone by the SEB group on Thursday, SEB Commodities Analyst Ole R. Hvalbye highlighted that the EIA’s newest weekly petroleum standing report “painted a mildly bullish image, displaying broad attracts throughout the barrel regardless of greater refinery runs and imports”.
“Industrial crude inventories declined by a million barrels, pulling whole shares to 422.8 million barrels, roughly 4 p.c beneath the five-year common. The draw comes as refineries lifted throughput to fifteen.7 million barrels per day (up 0.6 million barrels per day on the week) and operated at 88.6 p.c utilization,” he identified.
“Gasoline inventories fell by 2.1 million barrels, now barely beneath their five-year common, whereas diesel inventories dropped by 1.5 million barrels and proceed to face seven p.c beneath seasonal norms. The numbers counsel continued tightness in U.S. inventories, particularly in center distillates,” he added.
Within the report, Hvalbye famous that the U.S. refining sector stays supported by a good diesel market, “with below-average inventories persevering with to underpin robust refining margins”.
“After constructing from July by way of early September, diesel stockpiles have begun to pattern decrease once more as harvest season boosts demand within the Midwest,” he stated.
“The place inventories go from right here will largely decide how lengthy refiners can preserve these unusually large diesel margins,” he added.
Hvalbye additionally outlined within the report that latest EIA information “has proven swings in refinery throughput, from record-high seasonal ranges to the bottom since 2021 in simply two weeks”.
“This probably displays deliberate turnarounds and secondary unit points in PADD 3 (Texas Gulf area), slightly than structural demand weak point. The tempo of restoration in refinery runs over the approaching weeks will likely be an essential short-term indicator for crude balances,” he added.
The SEB analyst went on to state within the report that, total, the newest information “affirm that U.S. inventories stay considerably tight, whereas refinery operations and exports proceed to drive short-term volatility”.
“Mixed with renewed geopolitical threat, the … [EIA] report provides one other layer of supportive fundamentals for crude within the close to time period,” he stated.
“In the meantime, barrels at sea proceed to rise, but we now have not seen these volumes mirrored in world onshore inventories – not this week both,” he added.
“In different phrases, one other counter-seasonal attract U.S. business crude shares continues to offer draw back help, underscoring that inventories are nonetheless tightening when they need to usually be constructing,” Hvalbye continued.
To contact the creator, e mail andreas.exarheas@rigzone.com
