US Refinery Demand Hit 4-Month High
US refinery demand
The EIA (U.S. Energy Information Administration) reported that US refinery crude oil demand rose 268,000 bpd (barrels per day) to 16,697,000 bpd between March 31, 2017, and April 7, 2017. US refinery crude oil demand rose 1.6% week-over-week and 4.7% YoY (year-over-year). US refineries operated at 91% of their operable capacity in the week ending April 7, 2017. Refinery demand rose for the fourth straight week and is at the highest level since January 1, 2017. The rise in refinery demand is bullish for crude oil (USL) (SCO) (FXN) prices. For more on crude oil prices, read part one of this series.
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US crude oil imports
The EIA reported that US crude oil imports rose by 28,000 bpd to 7,878,000 bpd between March 31 and April 7, 2017. Imports rose 0.4% week-over-week, but fell 0.8% year-over-year.
US crude oil inventories
The rise in refinery demand between March 31 and April 7, 2017, likely led to the fall in inventories. The rise in US crude oil production and imports for the same period could have limited the fall in inventories. A rise in exports could have also contributed to the fall in inventories. Read Are US Crude Oil Exports Game Changers for the Crude Oil Market? for more on US crude oil exports. For more on US production, read the previous part of the series. For more on US crude oil inventories, read part two of this series.
In the next article, we’ll take a look at US gasoline prices and how they impact crude oil prices.