uploads///US crude oil production

US Crude Oil Production Levels Pushed Inventory Levels


Jan. 27 2016, Updated 10:43 a.m. ET

Crude oil production and imports

The production levels of US crude oil were at 9.2 MMbbls (million barrels) for the week ended January 15, 2016. The production levels were almost stable with slight rises from the past four to five months. Also, US crude oil imports are rose from the past three weeks to stand at 7.8 MMbbls for the week ending January 15, 2016.

Article continues below advertisement

API report shows massive rise in crude oil inventories

The analysts were expecting a rise of 3.5 MMbbls, but crude oil inventories rose by 11.4 MMbbls for the week ending January 22, 2016. The rise in crude oil inventories is due to stable production levels and lower demand from refineries.

Additionally, US production levels were around 9.6 MMbbls in June 2015 but gradually fell to 9.09 MMbbls in October 2015. But, once again, US crude oil rose by around 0.2 MMbbls to stand at 9.23 MMbbls for the week ending January 15, 2016.

After coming back from their winter refinery maintenance, refineries operated at 95% of their operable capacities. On the other hand, the operable capacities have gradually fallen to 91% heading to summer refinery maintenance.

The fall in refinery runs is mainly because of the lower gasoline and distillate demand. In turn, the distillate demand has been worsened due to mild weather that limited refinery inputs. But, the production and imports of crude oil continued at previous levels. So, week by week, crude oil inventories are rising.


The rise in crude oil production levels is good for crude oil producers like Conoco Phillips (COP), Chesapeake Energy (CHK), Anadarko Petroleum (APC), Occidental Petroleum (OXY), and Devon Energy (DVN). But the current crude oil production levels resulted in massive inventory builds due to lower demand. That’s negative for crude oil prices as well as the revenues of crude oil producers.

Devon Energy (DVN) accounts for 0.78% of the iShares US Energy ETF (IYE).


More From Market Realist

  • Open sign on a sidewalk
    Macroeconomic Analysis
    Top Reopening Stocks to Play the Shifting Market Sentiment
  • Morgan Stanley sign and stock numbers
    Macroeconomic Analysis
    Morgan Stanley's Buyback Stock Picks in 2021
  • Black Wall Street sign is sign of ethical investing
    Macroeconomic Analysis
    Ethical Investing Stocks and Funds for Your 2021 Portfolio
  • New York City skyline and Goldman Sachs logo
    Macroeconomic Analysis
    Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.