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EIA's Crude Oil Inventory Report Impacts Crude Oil Prices

PART:
1 2 3 4 5 6
Part 5
EIA's Crude Oil Inventory Report Impacts Crude Oil Prices PART 5 OF 6

US Gasoline Inventories near 11-Month High

US gasoline inventories  

The EIA (U.S. Energy Information Administration) reported that US gasoline inventories rose by 6.8 MMbbls (million barrels) to 253.2 MMbbls from January 13–20, 2017. US gasoline inventories are at the highest level since February 2016.

A market survey estimated that US gasoline inventories would rise by 0.5 MMbbls from January 13–20, 2017. A larger-than-expected rise in gasoline inventories pressured gasoline prices. February gasoline futures fell 2.5% to $1.5 per gallon on January 25, 2017.

Bearish momentum in gasoline prices also pressured crude oil (UCO) (PXI) (IEZ) (ERY) prices. For more on crude oil prices, read Part 1 of this series. Changes in gasoline and crude oil prices impact oil producers and refiners’ profitability like Phillips 66 (PSX), Tesoro (TSX), Denbury Resources (DNR), Chevron (CVX), and Northern Tier Energy (NTI).

US Gasoline Inventories near 11-Month High

US Gasoline Inventories near 11-Month High

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Gasoline production, imports, and demand  

US gasoline production fell by 128,000 bpd (barrels per day) to 8,825,000 bpd from January 13–20, 2017. Production fell 1.4% week-over-week and 3.7% year-over-year. US gasoline imports rose by 5,000 bpd to 593,000 bpd during the same period. Gasoline demand fell by 30,000 bpd to 8,039,000 bpd.

Impact of gasoline inventories  

For the week ending January 20, 2017, US gasoline inventories were 2% higher than they were in the same period in 2016. US gasoline inventories are also above their seasonal five-year range. High gasoline inventories could pressure gasoline and crude oil prices.

Lower gasoline and crude oil prices could have a negative impact on oil producers and refiners’ profitability like Valero (VLO), Phillips 66 (PSX), and Bonanza Creek Energy (BCEI).

In the next part of this series, we’ll take a look at US distillate inventories.

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