2017 Economic Calendar
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EIA Petroleum Status Report  
Released On 9/13/2017 10:30:00 AM For wk9/8, 2017
PriorActual
Crude oil inventories (weekly change)4.6 M barrels5.9 M barrels
Gasoline (weekly change)-3.2 M barrels-8.4 M barrels
Distillates (weekly change)-1.4 M barrels-3.2 M barrels

Highlights
Crude oil inventories rose by a smaller-than-expected 5.9 million barrels in the September 8 week to 468.2 million, 2.5 percent below their level a year ago. Product inventories fell sharply, with gasoline down 8.4 million barrels to 218.3 million, 4.4 percent below last year at this time, and distillates down 3.2 million barrels to 144.6 million, off 11.2 percent from the year ago level. Analysts had expected a larger build in crude inventories of around 10 million barrels, but smaller declines in the inventories of products. However, a report from the American Petroleum Institute, a private industry group, showed a crude oil build and product declines more in line with the EIA data. As in the prior week, the crude oil inventory build up and product declines were a result of Hurricane Harvey, which prompted Texas oil companies in the affected area to temporarily close down their refinery operations.

Refineries operated at 77.7 percent of their operating capacity, 2 percentage points below the prior week's level. But gasoline production rose to 9.9 million barrels per day, 400,000 barrels per day more than in the prior week. This came at the expense of distillate production, which fell to an average of 4.0 million barrels per day from 4.5 million.

Daily crude oil imports continued in their decline, falling by 603,000 barrels per day from the prior week to 6.5 million barrels per day, taking the 4-week average down to 7.6 million barrels per day, 7.4 percent below the level during the same period last year.

The demand side continued to soften gently, with total product supplied over the last 4 weeks averaging 20.4 million barrels per day, down 0.8 percent from last year at this time. Motor gasoline supplied was slightly higher, however, averaging 9.6 million barrels per day, 0.2 percent above the level in the year ago period. Distillate fuel supplied declined marginally to a still large 4.0 million barrels per day, up 10.4 percent from last year.

Crude oil inventories and their product counterparts are likely to exchange roles in the coming weeks as refineries gradually fire up again and refine the accumulated crude supplies away.

Definition
The Energy Information Administration (EIA) provides weekly information on petroleum inventories in the U.S., whether produced here or abroad. The level of inventories helps determine prices for petroleum products.  Why Investors Care
 
[Chart]
As is evident from the chart, crude oil stocks can fluctuate dramatically over the year. When oil prices nearly reached $50 per barrel in August 2004, financial market players began to monitor crude oil inventories. It is not surprising to see sharp price hikes in crude oil when inventories are falling. Conversely, one would expect price declines when inventories are rising.
Data Source: Haver Analytics
 
 

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