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POST DOE WRAP: NYMEX shoots higher on crude draw
HOUSTON, September 21, 2016 (PCW) -- NYMEX crude and products futures prices were higher early Wednesday after government figures showed a surprising draw in crude stocks.
The US remains long in crude, gasoline and diesel. Refinery crude input volumes fell slightly nationwide.
Domestic gasoline demand remains robust and export volumes of products were higher.
As of 9:52 am CST, November NYMEX WTI rose $1.12/bbl to $45.17/bbl. October gasoline rose 2.61 cpg to 139.07 cpg, and October diesel fell 2.30 cpg to 142.80 cpg.
Crude inventories fall
The US Energy Information Administration statistics for the week ending September 16 showed a 6.2 million barrel decrease in crude inventories to 504.6 million barrels. Domestic crude oil production was put at 8.512 million b/d, up 19,000 b/d for the week, and 624,000 b/d lower versus the same period last year.
Inventories still are “historically high” for this time of year, per the EIA, but the crude draw was a surprise, sources said.
Imports of crude were up 247,000 b/d to 8.3 million b/d on the week. Over the past four weeks, crude imports averaged 8.1 million b/d, an increase of 9.0% compared to last year at this time.
Essentially, domestic crude production is lower, but imports are replacing the lost barrels.
Gasoline imports decline
Gasoline imports were put 569,000 b/d, down from 650,000 b/d the previous week. For the same period last year the figure was 504,000 b/d. Distillate imports were 76,000 b/d, down from 140,000 b/d last week and from 164,000 b/d the previous year (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 20.3 million b/d, up 3.0% versus the same period last year.
Total gasoline inventories (including blendstocks) were down 3.2 million barrels at 225.2 million barrels (still “well above the upper limit of the average range,” per the EIA), 6.4 million barrels over last year. Demand was 9.5 million b/d over the past four weeks, up 4.1% from the same period last year.
Distillate stocks rose 2.2 million barrels to 165.0 million barrels (“above the upper limit of the average range,” per the EIA), 13.1 million barrels over last year. Distillate demand over the past four weeks was down 5.9% to 3.6 million b/d compared to the same period last year.
Propane stocks rise
Propane/propylene inventories on the week were 101.7 million barrels, up 0.7 million barrels on the week, and up 5.5 million barrels versus last year.
Total US refinery inputs averaged 16.6 million b/d, down 143,000 b/d compared to the previous week. Inputs of crude oil nationwide to refineries on a percentage basis were down 0.2% on the week, put at 92.0% of capacity. In the Gulf Coast (PADD III), inputs were down 0.2% to 92.2%.
Also, net exports of all products were put at 3.114 million b/d, up 1.529 million b/d for the week, a bullish number. The US needs to export products to keep inventories manageable.
While gasoline demand was put at 9.5 million b/d, gasoline production came in at 10.083 million b/d. Distillate demand was 3.6 million b/d, but production was 4.978 million b/d. -- Robert Sharp