The U.S. Energy Information Administration (EIA) released its weekly petroleum status report this morning. U.S. commercial crude inventories fell by 6.5 million barrels last week, bringing the total U.S. commercial crude inventory to 373.6 million barrels, above the upper limit of the five-year range for this time of the year.
The consensus estimate called for a weekly inventory decrease of 800,000 barrels. Crude prices, which had been rising already today, rose further on the substantial inventory drop.
Total gasoline inventories fell by 2.2 million barrels last week and are now in the lower half of the five-year average range. Over the past four weeks, gasoline supplied has declined by 3.4% compared to the same period last year. Total motor gasoline supplied averaged 8.8 million barrels a day for the four weeks.
For the past week, crude imports averaged 8.4 million barrels a day, down by 1.2 million barrels a day from the previous week. Refineries were running at 92.2% of capacity, with daily input of 15.6 million barrels a day, down by 225,000 barrels a day from the previous week.
Distillate inventories, which include diesel fuel, fell by 1 million barrels last week and are now below the lower limit average. Distillate product supplied totaled 3.5 million barrels a day last week, down 2.4% when compared with the same period last year. Distillate production fell to 4.6 million barrels a day last week.
Today’s report is mixed news for refiners like Valero Energy Corp. (NYSE: VLO), Marathon Petroleum Corp. (NYSE: MPC), Tesoro Corp. (NYSE: TSO), HollyFrontier Corp. (NYSE: HFC) and Western Refining Inc. (NYSE: WNR). On one hand, run rates remain high and inventories of refined products are falling, which should translate into better pricing and therefore better margins. On the other hand, crude prices have been trending higher, putting some pressure on margins.
WTI crude rose by about $0.30 a barrel after the EIA report was published, to $88.89. Bringing crude inventories into line with demand for refined products is a dicey proposition given the almost daily swings in sentiment on the global economy.
Paul Ausick
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
