EIA’s gasoline inventories
The EIA (U.S. Energy Information Administration) released its “This Week in Petroleum Report” on June 29, 2016. It reported that US gasoline inventories rose by 1.4 MMbbls (million barrels) to 239 MMbbls for the week ending June 24, 2016, compared to the previous week. Market surveys projected that gasoline inventories would rise by 0.06 MMbbls for the same period. US gasoline inventories are 10% higher than in the corresponding period in 2015. They’re also higher than the upper range for the last five years.
Gasoline production, imports, and demand
US gasoline production fell by 330,000 bpd (barrels per day) to 9.9 MMbpd (million barrels per day) for the week ending June 24, compared with the previous week. Production fell by 3.2% week-over-week and by 0.8% year-over-year. Gasoline imports rose by 0.03 MMbpd to 0.9 MMbpd for the week ending June 24 compared to the previous week. The four-week average gasoline demand was almost flat at 9.7 MMbpd for the same period.
Impact of gasoline inventories
High gasoline inventories will limit the rise of gasoline prices. For more on gasoline prices, read the sixth part of this series. Lower gasoline and crude oil prices negatively affect oil producers and refiners such as PDC Energy (PDCE), Tesoro (TSO), and Stone Energy (SGY).
In the final part of this series, we’ll discuss US distillate inventories.