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POST DOE WRAP: NYMEX futures fall after crude inventory increase
HOUSTON, February 15, 2017 (PCW) -- NYMEX crude and products futures prices were down early Wednesday after government figures showed a huge increase in crude stocks.
The US remains long in crude, gasoline and diesel. Refinery crude inputs were lower and exports of products were healthy, but gasoline demand was surprisingly low.
As of 12:29 pm CST, March NYMEX WTI was down $0.12/bbl to $53.08/bbl; March gasoline fell 0.30 cpg to 154.37 cpg and March diesel was down 0.96 cpg to 162.86/gal
Crude inventories up 9.5m barrels
The US Energy Information Administration statistics for the week ending February 10 showed a 9.5 million barrel increase in crude inventories to 518.8 million barrels (“above the upper limit of the average range,” per the EIA). Domestic crude oil production was put at 8.977million b/d, down 1,000 b/d for the week, and 158,000 b/d lower versus the same period last year.
Imports of crude were down 881,000 b/d to about 8.5 million b/d on the week. Over the past four weeks, crude imports averaged 8.5 million b/d, an increase of 9.9% compared to last year at this time.
Gasoline imports fall 207,000 b/d
Gasoline imports were put at 604,000 b/d, down from 811,000 the previous week; for the same period last year the figure was 565,000 b/d. Distillate imports were 216,000 b/d, up from 209,000 b/d on the week; the figure for last year was 232,000 b/d (typically the US imports products to the US East Coast and exports from the US Gulf Coast).
Total product demand over the past four weeks was put at 19.4 million b/d, down 2.0% versus the same period last year.
Total gasoline inventories (including blendstocks) were up 2.8 million barrels to 259.1 million barrels (“above the upper limit of the average range,” per the EIA), and 0.4 million barrels over last year. Demand was 8.4 million b/d over the past four weeks, off 5.3% from the same period last year.
Distillate stocks lower by 0.7m barrels
Distillate stocks were put at 170.7 million barrels (“above the upper limit of the average range”), down 0.7 million barrels compared to last week, and 7.7 million barrels above last year. Distillate demand over the past four weeks was 3.8 million b/d, up 7.4% compared to the same period last year.
Propane/propylene inventories on the week were 53.1 million barrels (still “in the upper half of the average range”), down 2.6 million barrels on the week, and lower by 17.3 million barrels versus last year.
Total US refinery inputs averaged 15.5 million b/d, down 435,000 b/d compared to the previous week. Inputs of crude oil nationwide to refineries on a percentage basis were off 2.3% on the week, put at 85.4% of capacity. In the Gulf Coast (PADD III), inputs were down 1.3% to 84.9%.
Exports lower by 318,000 b/d
Also, net exports of all products were put at 2.519 million b/d, lower by 318,000 b/d for the week, still a fairly bullish number. The US needs to export products to keep inventories manageable.
While domestic gasoline demand was put at 8.4 million b/d, total gasoline production came in at 8.950 million b/d. Distillate demand was 3.8 million b/d, but production was 4.531 million b/d. -- Robert Sharp