US gasoline inventories
The EIA (U.S. Energy Information Administration) reported that US gasoline inventories fell 2.9 MMbbls (million barrels) to 236.1 MMbbls between March 31 and April 7, 2017. A market survey estimated that US gasoline inventories would fall 1.7 MMbbls between March 31 and April 7, 2017. Gasoline prices fell despite the fall in gasoline inventories on April 12, 2017.
US gasoline inventories fell for the eighth straight week. As a result, US gasoline futures are near a 20-month high. Crude oil (ERY) (ERX) (FENY) and gasoline prices usually move together as they did on April 12, 2017. Moves in gasoline and crude oil prices impact the profitability of oil producers and refiners like Western Refining (WNR), Tesoro (TSO), Phillips 66 (PSX), Bonanza Creek Energy (BCEI), and Swift Energy (SFY). For more on crude oil and gasoline prices, read part one and part five of this series.
Gasoline production, imports, and demand
US gasoline production rose by 412,000 bpd (barrels per day) to 9,927,000 bpd between March 31 and April 7, 2017. Production rose 4.3% week-over-week and 3.7% year-over-year. US gasoline imports fell by 119,000 bpd to 488,000 bpd during the same period. Gasoline demand rose by 30,000 bpd to 9,275,000 bpd.
Impact of gasoline inventories
US gasoline inventories hit 259.1 MMbbls for the week ending February 10, 2017, the highest level ever. US gasoline inventories are 10% below their all-time high. The fall in gasoline inventories could support gasoline and crude oil prices.
In the next part of this series, we’ll take a look at US distillate inventories.