Crude Inventory Rises Less Than Expected

The U.S. Energy Information Administration (EIA) released its weekly petroleum status report this morning. U.S. commercial crude inventories increased by 2.6 million barrels last week, bringing the total U.S. commercial crude inventory to 371.7 million barrels, well above the upper limit of the five-year range for this time of the year.

Total gasoline inventories increased by 1.7 million barrels last week and remain in the upper limit of the five-year average range. Total motor gasoline supplied averaged about 8.4 million barrels a day over the past four weeks - a rise of about 4.7% compared with the same period a year ago.

Distillate inventories decreased by 1 million barrels last week, and are near the lower limit of the average range. Distillate product supplied averaged 3.5 million barrels a day over the past four weeks, down 3.6% when compared with the same period last year. Distillate production totaled 4.5 million barrels a day last week, up about 200,000 barrels a day when compared with the prior week.

The American Petroleum Institute reported an inventory increase of 3.63 million barrels in crude supplies last week. Platts estimated a build of 3 million barrels in crude inventories for last week. Dow Jones estimates called for a crude inventory build of 2.9 million barrels, an increase of 900,000 barrels in gasoline supplies and a drop of 600,000 barrels in distillate supplies.

Crude prices were about 1% lower before the EIA report at $95.66 a barrel and rose slightly, to around $95.79 following the report.

For the past week, crude imports averaged about 7.6 million barrels a day, an decrease of about 499,000 barrels a day from the previous week. Refineries were running at 84.2% of capacity, with daily input of 14.4 million barrels a day, about 50,000 barrels a day less than the previous week.

The United States Oil ETF (NYSEMKT: USO) is down 0.8%, at $34.75 in a 52-week range of $29.02 to $42.30.

The United States Gasoline ETF (NYSEMKT: UGA) is down 0.8%, at $63.38 in a 52-week range of $45.13 to $64.43.

Filed under: 24/7 Wall St. Wire, Commodities, Oil & Gas, Research Tagged: UGA, USO