Gasoline Prices Continue Slide Despite Falling Crude Inventory

Energy

Published: July 30, 2014 11:00 am

Last Updated: April 27, 2020 9:55 pm

The U.S. Energy Information Administration (EIA) released its weekly petroleum status report Wednesday morning. U.S. commercial crude inventories decreased by 3.7 million barrels last week, maintaining a total U.S. commercial crude inventory to 367.4 million barrels, and remain in the upper half of the five-year range for this time of the year.

Total gasoline inventories increased by 400,000 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 more than 8.9 million barrels a day for the past four weeks, down by about 1% over the same period a year ago.

Distillate inventories rose by 800,000 barrels last week, and remain near the lower limit of the average range. Distillate product supplied averaged about 3.9 million barrels a day over the past four weeks, down by 3.1% when compared with the same period last year. Distillate production averaged 5 million barrels a day last week, down by 200,000 barrels a day compared with the prior week’s production.

Tuesday evening, the American Petroleum Institute (API) reported that crude inventories fell by 4.4 million barrels in the week ending July 25, together with a rise of 100,000 barrels in gasoline supplies and an increase of 500,000 barrels in distillate supplies. For the same period analysts estimated a decrease of 2.2 million barrels in crude inventories, an increase of 1.1 million barrels in gasoline inventories and a rise of 1.4 million barrels in distillate inventories.

Before the EIA report, West Texas Intermediate (WTI) crude was trading up at around $101.42 a barrel, about 0.5% above Tuesday’s closing price of $100.97. The WTI price rose to around $101.56 a barrel shortly after the report was released.

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For the past week, crude imports averaged more than 7.7 million barrels a day, up by about 300,000 barrels a day over the previous week. Refineries were running at 93.5% of capacity, with daily input of about 16.6 million barrels a day, essentially the same as the previous week’s average.

Gasoline pump prices continue to slip as inventories rise. Crude oil prices are about $1 a barrel below last week’s level. Refiners Phillips 66 (NYSE: PSX) and Valero Energy Corp. (NYSE: VLO) reported second-quarter results this morning, with Phillips 66 missing profit estimates with a drop of $95 million in net income. Valero’s net income rose $122 million on strong ethanol sales.

According to AAA, the current national average pump price per gallon of regular gasoline is $3.513, down from $3.558 a week ago and down from $3.676 a month ago. Last year a gallon of regular cost $3.624 on average in the United States.

Here is a look at how share prices at three U.S. producers reacted to this latest report.

Exxon Mobil Corp. (NYSE: XOM) traded down about 0.5%, at $103.03 in a 52-week range of $84.79 to $104.76.

Chevron Corp. (NYSE: CVX) also traded down about 0.3%, at $131.98 in a 52-week range of $109.27 to $135.10.

Continental Resources Inc. (NYSE: CLR) traded down about 0.6%, at $151.04 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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