Wednesday, July 26, 2023

Crude and Petroleum Product Inventories - July 26 2023

Data per the EIA weekly report

Crude stocks fell by -600K barrels, from last week, yet remains only -0.3% from the 5 year seasonal average. It should be noted the 5 year average includes the abnormal 2020 and 2021 number. Otherwise, the current inventory is nearly +4.2% above normal.

Distillates inventory slid 245K barrels; and Gasoline inventories slid at about 800K barrels. Distillates (-13.5%,-3.2%) and Gasoline (-5.8%, -3.1%) are both below 5 year and 3 year adjusted average inventories.

The SPR halted the decline last week and remains unchanged from this report.

WTI is $78.94, compared to $75.38 (+4.8%), one week ago, and $94.65, one year ago(-16.6%).

Refinery output improved on a weekly basis, yet remains below year ago levels

For anyone interested, the U.S. has exported 771.2M barrels of crude and petroleum products, more than imported, since March 1, 2022. It jumped nearly 16.9M barrels this past week.

Overall, crude stocks remain quite healthy, compared to this time last year, with days supply at 27.8, to last year's 25.6 days.

It is 6 of one and a half dozen of the other, for the crude prices moving upward. Supposedly China's crude demand will increase, due to Government intervention, although the outcome is still in doubt. The Saudi's will reduce production starting next month, although there are reports of increased Russian exports. 

All of this was theorized in April and then prices fell. Will this be a repeat?

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