EIA crude oil inventory report
The EIA’s (U.S. Energy Information Administration) released its weekly petroleum status report on February 24, 2016. The government agency reported that the US crude oil inventory rose by 3.5 MMbbls (million barrels) to 507.6 MMbbls for the week ending February 19, 2016. Market surveys estimated that the crude oil inventory would rise by 3.2 MMbbls for the same period. The US crude oil inventory rose for the seventh time in the last ten weeks despite refinery maintenance season and peak winter season. To learn about the effects of rising inventory, read How US Crude Oil Storage Utilization Has Reached 60% of Capacity. For more on US crude oil refinery demand, read the ninth part of this series.
EIA crude oil inventory by regions
The EIA divides US crude oil storage into the following five regions:
- East Coast
- Gulf Coast
- Rocky Mountains
- West Coast
The Gulf Coast crude oil inventory rose to 255.6 MMbbls from 251.2 MMbbls for the week ending February 19, 2016. In contrast, the crude oil inventory in the Midwest marginally fell to 155.4 MMbbls from 155 MMbbls for the same period. The Gulf Coast and Midwest regions affect the overall US crude oil inventory the most. The rising crude oil inventory continues to put pressure on oil prices and oil producers like ConocoPhillips (COP) and Energy XXI (EXXI). It also influences crude oil storage costs. To learn more, read Crude Oil Storage Costs Rose 9 Times, US Crude Tests New Limits.
The crude oil inventory has hit a 34-year high and is at its highest level in the last 80 years for this time of year. The record-high US inventory will add worries to the glut market. However, the rising crude oil inventory supports oil storage and transportation companies like Williams Companies (WMB), DCP Midstream Partners (DPM), Spectra Energy (SE), and Kinder Morgan (KMI).
The roller-coaster ride in the oil and gas market also affects ETFs and ETNs such as the VelocityShares 3x Long Crude Oil ETN (UWTI), the Direxion Daily Energy Bull 3X Shares ETF (ERX), and the iShares Global Energy ETF (IXC).
In the next part of this series, we’ll discuss how the gasoline inventory has affected crude oil prices.