US refinery demand
The EIA (U.S. Energy Information Administration) reported that US refinery crude oil demand fell by 54,000 bpd (barrels per day) to 15,893,000 bpd between January 27, 2017, and February 3, 2017. US refinery crude oil demand fell 0.3% week-over-week, but rose 2.5% YoY (year-over-year). US refineries operated at 87.7% of their operable capacity in the week ending February 3, 2017. Refinery demand fell for the fourth consecutive week. The fall in refinery demand partially pressured crude oil (BNO) (IEZ) (ERY) prices for the same period. Prices fell 3.3% during the same period.
Lower crude oil prices have a negative impact on oil producers’ earnings like Stone Energy (SGY), Hess (HES), Carrizo Oil & Gas (CRZO), and PDC Energy (PDCE). For more on crude oil prices, read Part 1 of this series.
US crude oil imports
US crude oil imports rose by 1,082,000 bpd to 9,372,000 bpd between January 27, 2017, and February 3, 2017. Imports are up 13.1% week-over-week and 32% YoY.
US crude oil inventories
The rise in US crude oil imports, fall in US refinery demand, and rise in US crude oil production between January 27, 2017, and February 3, 2017, would have led to the rise in inventories. A fall in exports could have also contributed to the rise in inventories. Read Are US Crude Oil Exports Game Changers for the Crude Oil Market? for more on US crude oil exports. For more on US production, read the previous part of the series. For more on US crude oil inventories, read Part 2 of this series.
In the next part of this series, we’ll take a look at US gasoline prices and how they impact crude oil prices.