US crude oil imports
The EIA (U.S. Energy Information Administration) reported that US crude oil imports fell by 745,000 bpd (barrels per day) to 7,405,000 bpd from March 3–10, 2017. Imports fell 9.1% week-over-week and 3.7% year-over-year. US crude oil imports are near the lowest level so far in 2017. The fall in crude oil imports impacts inventories, which in turn impacts crude oil (ERX) (ERY) (FXN) prices.
Moves in crude oil prices impact oil producers’ earnings like Hess (HES), Triangle Petroleum (TPLM), Carrizo Oil & Gas (CRZO), and PDC Energy (PDCE). For more on crude oil prices, read Part 1 of this series.
US refinery demand
US refinery crude oil demand fell by 20,000 bpd to 15,472,000 bpd from March 3–10, 2017. US refinery crude oil demand fell 0.1% week-over-week and 3.3% YoY (year-over-year). US refineries operated at 85.1% of their operable capacity in the week ending March 10, 2017. Refinery demand fell for the eighth time in nine weeks. The fall in refinery demand is bearish for crude oil (RYE) (PXI) (IEZ) prices.
US crude oil inventories
The fall in US crude oil imports from March 3–10, 2017, would have likely led to the fall in inventories. The rise in US crude oil production and fall in refinery demand for the same period could have limited the fall in inventories. A rise in exports could have contributed to the fall 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.