Total gasoline inventories increased by 3.4 million barrels last week and remain in the upper half of the five-year average range. Total motor gasoline supplied (the EIA’s measure of consumption) averaged 9 million barrels a day for the past four weeks, down by about 0.1% over the same period a year ago.
Distillate inventories rose by 1.6 million barrels last week and remain near the lower limit of the average range. Distillate product supplied averaged more than 3.8 million barrels a day over the past four weeks, down by 6.2% when compared with the same period last year. Distillate production averaged 5.2 million barrels a day last week, about equal to the prior week’s production.
Tuesday evening, the American Petroleum Institute (API) reported that crude inventories fell by 600,000 barrels in the week ending July 18, together with a rise of 3.6 million barrels in gasoline supplies and an increase of 2.5 million barrels in distillate supplies. For the same period, analysts estimated a decrease of 2.6 million barrels in crude inventories, an increase of 1.2 million barrels in gasoline inventories and a rise of 1.8 million barrels in distillate inventories.
Before the EIA report, West Texas Intermediate (WTI) crude was trading at around $102.58 a barrel, about 1% above Tuesday’s closing price of $102.39. The WTI price rose sharply higher to around $102.84 a barrel shortly after the report was released.
For the past week, crude imports averaged more than 7.4 million barrels a day, down by 20,000 barrels a day over the previous week. Refineries were running at 93.8% of capacity, with daily input of more than 16.6 million barrels a day, essentially the same as the previous week’s average.
Another big drop in crude oil inventories was accompanied this week by a very high level of refinery throughput. The sharp rise in gasoline inventories should keep prices from moving higher in the coming week, but crude oil prices are likely to get a boost. And while that usually means that gasoline prices will rise, in the United States refiners continue to be price-makers for crude, not price-takers. The sharp increase in crude prices after this report is very likely to be given back by this time next week.
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According to AAA, the current national average pump price per gallon of regular gasoline is $3.558, down from $3.598 a week ago and down from $3.683 a month ago. Last year a gallon of regular cost $3.666 on average in the United States.
Here is a look at how share prices at three U.S. producers reacted to the most recent report.
Exxon Mobil Corp. (NYSE: XOM) traded up about 0.43%, at $103.97 in a 52-week range of $84.79 to $104.61.
Chevron Corp. (NYSE: CVX) also traded up about 0.44%, at $133.16 in a 52-week range of $109.27 to $133.57.
Continental Resources Inc. (NYSE: CLR) traded up about 0.1%, at $152.57 in a 52-week range of $90.11 to $159.24. Continental is the largest producer in the Bakken shale play.
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