29 Dec

Why Oil Traders Are Tracking US Gasoline Inventories

WRITTEN BY Gordon Kristopher

US gasoline inventories  

US gasoline inventories rose by 0.5 MMbbls (million barrels) or 0.3% to 228.3 MMbbls from December 15 to 22, 2017, per the EIA. The inventories also increased by 1.2 MMbbls or 0.5% year-over-year. Market surveys had estimated that US gasoline inventories could have increased by 1.3 MMbbls from December 15 to 22, 2017.

US crude oil (DWT)(SCO) and gasoline futures (UGA) rose on December 28. US gasoline futures rose 0.08% to $1.79 per gallon on December 28.

Why Oil Traders Are Tracking US Gasoline Inventories

Crude oil (USO) prices are at a 30-month high. Higher oil (UCO) prices favor oil producers (IYE)(IEZ) like Hess (HES), W&T Offshore (WTI), Newfield Exploration (NFX), and Goodrich Petroleum (GDP).

Likewise, higher gasoline (UGA) prices benefit US refiners (CRAK) like PBF Energy (PBF) and Northern Tier Energy (NTI).

US gasoline production and demand  

US gasoline production increased by 181,000 bpd (barrels per day) to 10.3 MMbpd (million barrels per day) from December 15 to 22, per the EIA. However, production decreased by 291,000 bpd or 2.8% year-over-year.

US gasoline demand increased by 59,000 bpd to 9.5 MMbpd from December 15 to 22, 2017. Demand also increased by 207,000 bpd or 2.2% year-over-year. Any rise in gasoline demand is bullish for gasoline and oil (UCO) prices.


US gasoline inventories increased for the seventh consecutive week. Inventories rose by 18.8 MMbbls or 8.9% during this period. If this momentum continues in 2018, it will weigh on gasoline and oil (DBO) prices.

US gasoline inventories are ~3% above their five-year average for the week ending December 22, 2017. If the difference increase, it is a bearish sign for gasoline and oil (UWT) prices in 2018.

Next, we’ll cover US distillate inventories.

Latest articles

Tortoise Capital Advisors bought 9.5 million Kinder Morgan shares in Q3. That was the biggest addition among the company’s top 10 institutional investors.

Although near-term weakness exists in the cannabis stocks, we expect Cannabis 2.0 products or cannabis-derived products could act as a catalyst.

The US, Saudi Arabia, and Russia are the world’s top three crude oil producers. Let’s take a look at the world’s top oil players by production volumes.

Tesla’s Model Y is gearing up to enter the EV market next summer. Ford heated up this space with its announcement of the Mustang Mach-E launch in late 2020.

Yesterday, Comcast (CMCSA) rose 0.5% and closed at $44.81, with a market capitalization of $203.9 billion. But can you expect a further rise?

Advanced Micro Devices (AMD) is one of the best-performing semiconductor stocks of 2019, beating 100% year-to-date growth.