US crude oil refinery demand
The EIA (U.S. Energy Information Administration) stated that the US crude oil refinery demand rose by 211,000 bpd (barrels per day) to 16.4 MMbpd (million barrels per day) for the week ending June 3, 2016—compared to the previous week. The US crude oil refinery demand rose by 1.2% week-over-week. It fell by 1.2% year-over-year. Refineries operated at 90.9% for the week ending June 3, 2016—compared to 89.8% of their operable capacity for the week ending May 27, 2016.
US crude oil imports
US crude oil imports fell by 134,000 bpd to 7.7 MMbpd for the week ending June 3, 2016—compared to the previous week. This was a 1.2% week-over-week decrease. The decline in imports contributes to the drop in inventories. For more on US inventories, read the second part of this series.
Crude oil inventories fell due to the decline in US crude oil imports and a rise in refinery demand for the week ending June 3, 2016—compared to the previous week.
US crude oil production estimates and impact
In its June Short-Term Energy Outlook report, the EIA stated that US crude oil production will decline by 830,000 bpd to 8.6 MMbpd in 2016. It will likely decline by 410,000 bpd to 8.2 MMbpd in 2017.
The expectation of slowing US crude oil production could support crude oil prices. The recent uptick in crude oil prices benefits US shale oil producers such as Laredo Petroleum (LPI), Denbury Resources (DNR), and Synergy Resources (SYRG). For more on US production, read the previous part of the series.
In the next part of this series, we’ll take a look at gasoline prices.