US Gasoline Inventories Rose for the First Time in 9 Weeks
US gasoline inventories
The EIA (U.S. Energy Information Administration) reported that US gasoline inventories rose by 1.5 MMbbls (million barrels) to 237.7 MMbbls on April 7–14, 2017. A market survey estimated that US gasoline inventories would have fallen by 1.9 MMbbls on April 7–14, 2017. A surprise build in gasoline inventories pressured gasoline prices, which in turn pressured crude oil (IXC) (IYE) (SCO) (IEZ) prices on April 19, 2017. US gasoline inventories rose for the first time in nine weeks.
Crude oil and gasoline prices usually move together. Moves in gasoline and crude oil prices impact oil producers and refiners’ profitability like Phillips 66 (PSX), Marathon Petroleum (MPC), Bonanza Creek Energy (BCEI), and Sanchez Energy (SN). For more on crude oil and gasoline prices, read Part 1 and Part 5 of this series.
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Gasoline production, imports, and demand
US gasoline production fell by 133,000 bpd (barrels per day) to 9,794,000 bpd on April 7–14, 2017. Production fell 1.3% week-over-week, but rose 0.6% year-over-year. US gasoline imports rose by 355,000 bpd to 843,000 bpd during the same period. Gasoline demand fell by 52,000 bpd to 9,223,000 bpd.
Impact of gasoline inventories
US gasoline inventories hit 259.1 MMbbls for the week ending February 10, 2017—the highest level ever. US gasoline inventories are 8.3% below their all-time high. The fall in gasoline inventories could support gasoline and crude oil prices.
In the next part of this series, we’ll take a look at US distillate inventories.