US crude oil stocks surge 3.932 million barrels as imports rise
Analysis of EIA data
New York - November 30, 2011
U.S. commercial crude inventories climbed 3.932 million barrels to 334.747 million barrels during the week ended November 25, driven mainly by a rise in imports, while refiners reduced runs, data released by the U.S. Energy Information Administration (EIA) showed Wednesday.
The EIA’s reported total crude stock rise was near that of American Petroleum Institute, which reported 3.439-million-barrel increase on Tuesday. Both figures far exceeded analysts’ expectation of a 1-million-barrel rise.
The bulk of the stock increase was seen on the U.S. West Coast (USWC), where inventories rose 2.959 million barrels; stocks on the U.S. Atlantic Coast (USAC) were up 1.027 million barrels.
In the Midwest, crude stocks were near flat at 91.460 million barrels, while a 715,000-barrel draw was seen at the New York Mercantile Exchange (NYMEX) crude oil futures hub in Cushing, Oklahoma, which brought stocks to 31.301 million barrels.
Total inventories were driven higher as imports rose 742,000 barrels per day (b/d) to 9.061 million b/d and inputs to refineries fell 231,000 b/d to 14.565 million b/d, about 68,000 b/d below the five-year average.
Refinery utilization also declined, falling 0.9 percentage points to 84.6% of capacity.
In distillates, stocks also rose sharply, up 5.526 million barrels to 138.489 million barrels, amid record high production of 4.827 million b/d, during a time of the year when inventories typically decline. Analysts anticipated a 1.5-million-barrel draw in distillate stocks.
Distillate demand sank 829,000 b/d to 3.240 million b/d, which is about 701,000 b/d below the five-year average.
An EIA official said Wednesday that the drop in distillate demand could be related to a decline in truck demand during the U.S. Thanksgiving holiday.
At the same time, weekly exports of distillates – estimated at 948,000 b/d – could be lower, the EIA official said, since that figure is an estimated calculation.
Within distillates, stocks of ultra low sulfur diesel rose 3.185 million barrels and heating oil stocks climbed 1.827 million barrels.
Gasoline inventories rose 213,000 barrels to 209.847 million barrels, EIA data showed, with stocks along the USAC increasing 372,000 barrels.
Demand increased 177,000 b/d to 8.769 million b/d; however, it remains 269,000 b/d below the five-year average.
Analysts expected a 1.5-million-barrel increase in gasoline stocks.
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