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Page added on March 11, 2015
US crude stocks grow, likely to continue building
U.S. commercial crude oil stocks rose 4.5 million barrels during the week ended March 6, U.S. Energy Information Administration (EIA) data showed Wednesday.
Analysts surveyed by Platts on Monday had expected crude oil stocks to increase 4.2 million barrels week over week.
At 448.9 million barrels, inventories pushed further into record-high territory.
Crude oil imports dropped sharply the week ended March 6, though stocks still built as production was estimated to have risen 42,000 barrels per day (b/d) to 9.366 million b/d. Daily crude oil output exceeded the year-ago level by 14.5%.
Stocks at Cushing, Oklahoma, increased 2.3 million barrels, marking a return to large, weekly builds at the New York Mercantile Exchange (NYMEX) futures contract delivery point.
In 2015, Cushing stocks averaged an increase of 2 million barrels each week through February. For the week ended February 27, however, Cushing inventory rose only 536,000 barrels, sparking debate as to whether or not the pace was set to decelerate.
At 51.5 million barrels, Cushing stocks are 300,000 barrels shy of their record high set in 2013 and represent 72.7% of working capacity.
By region, the largest build occurred on the U.S. Gulf Coast (USGC), where stocks rose 2.54 million barrels to 222.4 million barrels.
USGC refineries were less active the week ended March 6, as crude oil runs dipped 88,000 b/d to 7.8 million b/d, helping stocks accumulate. USGC crude oil imports were down 251,000 b/d, mitigating the region’s stock build.
Total U.S. crude oil imports fell 575,000 b/d to 6.8 million b/d, which was below the EIA five-year low for the same reporting period.
Imports from Canada were down 29,000 b/d to 2.9 million b/d. Imports from Saudi Arabia fell 86,000 b/d to 659,000 b/d. Imports from Mexico decreased 73,000 b/d to 766,000 b/d.
U.S. crude oil runs rose 187,000 b/d to 15.3 million b/d, raising the refinery utilization rate 1.2 percentage points to 87.8% of operable capacity.
Analysts had expected a 0.5 percentage-point decline.
Refinery utilization dropped sharply in January and stayed low through February, as some refineries entered seasonal maintenance or performed unplanned repairs.
These refineries typically return in March and begin ramping up in preparation for the peak summer driving season, drawing more crude oil in the process.
DISTILLATE STOCKS RISE
Total U.S. distillate stocks increased 2.5 million barrels the week ended March 6, EIA data showed, compared with the 2.3 million-barrel decline analysts expected.
At 125.5 million barrels, distillate stocks were 6.9% below the EIA five-year average for the same reporting period.
The build was largest on the USGC. The region’s combined low- and ultra-low-sulfur diesel stocks rose 1.3 million barrels to 39.1 million barrels, which is 8.5% above the EIA five-year average.
U.S. Midwest (USMW) combined stocks drew 150,000 barrels to 31.835 million barrels, a 4.1% surplus to the five-year average. U.S. Atlantic Coast (USAC) combined stocks increased 1 million barrels to 23.8 million barrels, a 3.6% deficit to the five-year average.
Gasoline stocks on the USAC — home to the New York Harbor-delivered NYMEX futures contract — built 432,000 barrels to 68 million barrels, a 12% surplus to the five-year average.
Implied demand* for gasoline slipped 115,000 b/d to 8.5 million b/d.
Total U.S. gasoline stocks were down 187,000 barrels to 239.9 million barrels the week ended March 6. Analysts had expected a 1.7 million-barrel decline.
USGC gasoline stocks increased 684,000 barrels to 79.7 million barrels, a surplus of 8.7% to the five-year average. USMW inventory was down 101,000 barrels to 54.2 million barrels, a deficit of 0.4% to the five-year average.
7 Comments on "US crude stocks grow, likely to continue building"
Plantagenet on Wed, 11th Mar 2015 3:39 pm
The continuing rise in US oil stockpiles proves we are still in an oil glut.
Its going to take a little longer for slowdowns in drilling to translate into a slowdown in US oil production.
BobInget on Wed, 11th Mar 2015 3:46 pm
Here’s what didn’t fit the headline or
intent of this article = same report
r.eia.gov/wpsr/wpsrsummary.pdf
Total products supplied over the last four-week period averaged 19.6 million barrels per
day, up by 5.5% from the same period last year. Over the last four weeks, motor gasoline
product supplied averaged over 8.7 million barrels per day, up by 2.8% from the same
period last year. Distillate fuel product supplied averaged 4.1 million barrels per day over
the last four weeks, up by 12.8% from the same period last year. Jet fuel product supplied
is up 10.5% compared to the same four-week period last year
One simple question…..
If we have such an over-supply, why are we
importing oil from outside North America?
BobInget on Wed, 11th Mar 2015 4:02 pm
HRH will be eating his words soon enough.
This so called ‘glut’ reminds me of a prematurely melting glacier feeding excess
water to irrigated, now flooding land.
Pakistani Farmers depended on timely glacier melt for water. By the time flood control measures are in place, it’s time to prepare for drought.
Fooding stops when glaciers melt completely.
Rapid glacier melt is due to climate changes.
(it’s not a question of what CAUSED climate change, it’s happening)
As for oil gluts, there’s nothing supernatural
about ‘flooding’ markets with a commodity
to lower prices.
In the times of free Google there is zero excuse for not being able predict what happens when the music stops.
Craig Ruchman on Wed, 11th Mar 2015 6:14 pm
“If we have such an over-supply, why are we importing oil from outside North America?”
I guess it is partly because we have to keep production going so the oil companies can consume their own product to produce more oil, otherwise it all falls down like a house of cards. I sometimes wonder if we are importing oil to power the machinery to extract our more expensive and lower ERoEI shale oil. If so, it’s starting to look the elusive dream of a hydrogen economy that uses electrolysis to separate hydrogen and oxygen from electrical power comes from a coal fired plant.
Makati1 on Wed, 11th Mar 2015 7:18 pm
BobInget asks the right question: “If we have such an over-supply, why are we importing oil from outside North America?” (~3,800,000,000 bbls in 2014 according to the IEA ‘statistics’.)
When one has too many peaches, one does not buy more at any price. In fact, one gives away/sells cheap any extra before they rot.
Maybe Craig is right? I think so. The Red Queen is reaching light speed and will soon disappear…
viewcrafters on Thu, 12th Mar 2015 8:23 am
Also importing more from Mexico.
rockman on Thu, 12th Mar 2015 8:53 am
We import a sh*t load of oil because the US has become the f*cking refiner to the world. LOL. The refined products from about 3 million bopd are exported. Which is why I keep reminding folks that the debate over exporting oil from the US is just a damn mind game played by both sides looking for a political edge. The US might consume 18 million bopd but it doesn’t consume the refined products of all that oil. US consumers don’t buy oil so they don’t compete with foreign oil buyers…US refineries do. US consumers buy refined products and they do directly compete with foreign buyers for them because THERE IS NO BAN ON EXPORTING REFINERY PRODUCTS.
And besides the US does export oil today. The latest rate I saw was about 150 million bbls per year.