US gasoline inventories
The EIA (U.S. Energy Information Administration) reported that US gasoline inventories fell by 0.4 MMbbls (million barrels) to 240.7 MMbbls on May 5–12, 2017. A market survey estimated that US gasoline inventories would have fallen by 0.7 MMbbls on May 5–12, 2017.
Gasoline prices fell on May 17, 2017, due to the less-than-expected fall in gasoline inventories. Gasoline and crude oil (VDE) (USO) (UCO) prices diverged on May 17, 2017. US gasoline inventories fell for the second straight week.
Changes in gasoline and crude oil prices impact oil producers and refiners’ profitability like Tesoro (TSO), Marathon Petroleum (MPC), Bonanza Creek Energy (BCEI), and Sanchez Energy (SN). For more on crude oil and gasoline prices, read Part 1 and Part 5 of this series.
Gasoline production, imports, and demand
US gasoline production fell by 32,000 bpd (barrels per day) to 10,020,000 bpd on May 5–12, 2017. Production fell 0.3% week-over-week and 0.2% year-over-year. US gasoline imports fell by 257,000 bpd to 696,000 bpd during the same period. Gasoline demand rose by 44,000 bpd to 9,452,000 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 7.1% below their all-time high. However, US gasoline inventories are above their five-year range. High gasoline inventories could pressure gasoline and crude oil prices.
In the next part of this series, we’ll take a look at US distillate inventories.