Gasoline inventory

The EIA (U.S. Energy Information Administration) reported that the US gasoline inventory fell by 100,000 barrels to 239.7 MMbbls (million barrels) for the week ending April 15, 2016, compared with the previous week. The gasoline inventory fell for the eighth time in the last nine weeks. The US gasoline inventory is 6.2% higher than in the same period in 2015 and is higher than the upper part of the five-year range.

Did the Gasoline Inventory Fall for the 8th time in 9 Weeks?

Gasoline production, imports, and demand 

The government agency reported that the weekly US gasoline output rose by 17,000 bpd (barrels per day) to 9.7 MMbpd (million barrels per day) between April 8 and April 15. The US gasoline output is at the same level as in the corresponding period in 2015. Gasoline imports also rose by 0.22 MMbpd to 0.79 MMbpd between April 8 and April 15. In contrast, gasoline demand fell by 189,000 bpd to 9.4 MMbpd for the same period. This is 3.3% more than in the same period in 2015.

Impact of the fall in the gasoline inventory

The rise in gasoline exports led to the fall in the US gasoline inventory. The ups and downs in the US gasoline inventory influence gasoline prices. For more on gasoline prices, read the previous part of this series.

High gasoline prices support US refiners like Phillips 66 (PSX) and Tesoro (TSO). High crude oil prices benefit the margins of oil and gas producers like Ultra Petroleum (UPL), PDC Energy (PDCE), Cobalt International Energy (CIE), Swift Energy (SFY), and WPX Energy (WPX).

ETFs and ETNs like the PowerShares DWA Energy Momentum Portfolio (PXI), the DB Crude Oil Double Short ETN (DTO), the iShares Global Energy ETF (IXC), and the VelocityShares 3x Inverse Crude Oil ETN (DWTI) are affected by the ups and downs in oil and gas prices.

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

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