The U.S. Energy Department's weekly inventory release showed that crude stockpiles jumped unexpectedly, as imports climbed. The report further revealed that within the ‘refined products’ category, gasoline stocks dropped, while distillate supplies were up from the week-ago levels. Meanwhile, refiners kept their utilization rates unchanged.
The Energy Information Administration (EIA) Petroleum Status Report, which contains data for the previous week ending Friday, outlines information regarding the weekly change in petroleum inventories held and produced by the U.S., both locally and abroad.
The report provides an overview of the level of reserves and their movements, thereby helping investors understand the demand/supply dynamics of petroleum products. It is an indicator of current oil prices and volatility that affect businesses of companies engaged in the oil and refining industry, such as ExxonMobil Corp. (XOM - Free Report) , Chevron Corp. (CVX - Free Report) , ConocoPhillips (COP - Free Report) , Valero Energy Corp. (VLO - Free Report) and Tesoro Corp. .
Analysis of the Data
Crude Oil: The federal government’s EIA report revealed that crude inventories jumped by 3.78 million barrels for the week ending August 24, 2012, following a slide of 5.41 million barrels the week before.
Analysts surveyed by Platts, the energy information arm of McGraw-Hill Companies Inc. , had expected oil stocks to go down some 2 million barrels. A sharp rise in the level of imports led to the stockpile build-up – the first in 5 weeks – with the world's biggest oil consumer.
However, crude inventories at the Cushing terminal in Oklahoma – the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange – edged down by 421,000 barrels from previous week’s level to 44.82 million barrels. Stocks are currently just under the all-time high of 47.78 million barrels reached in June.
At 364.52 million barrels, current crude supplies are 2.1% above the year-earlier level, and are over the upper limit of the average for this time of the year. The crude supply cover was up from 23.2 days in the previous week to 23.5 days. In the year-ago period, the supply cover was 23.0 days.
Gasoline: Supplies of gasoline decreased for the fifth time in as many weeks despite domestic consumption declining slightly. The fall in gasoline inventories could be attributed to lower production and imports.
The 1.51 million barrels drop – below analyst projections – took gasoline stockpiles down to 201.23 million barrels. As a result of this decrease, the existing inventory level of the most widely used petroleum product is now 3.6% off the year-earlier levels and is in the lower limit of the average range.
Distillate: Distillate fuel supplies (including diesel and heating oil) inched up by 873,000 barrels last week, compared to analyst expectations for an unchanged inventory level. The rise in distillate fuel stocks – the third in as many weeks – could be attributed to higher imports.
At 126.08 million barrels, distillate supplies are 19.2% below the year-ago level and are under the lower limit of the average range for this time of the year.
Refinery Rates: Refinery utilization was unchanged from the prior week at 91.2%. Analysts were expecting the refinery run rate to decrease 0.25%.