Gold and Silver Info: Crude Inventory Rose Less than Expected

Thursday, November 11, 2010

Crude Inventory Rose Less than Expected

ONG Focus | Insights | Written by Oil N' Gold | Wed Oct 20 10 11:01 ET

Total crude oil and petroleum products stocks plunged -2.02 mmb to 1132 mmb in the week ended October 15. Crude oil inventory rose +0.67 mmb to 361.20 mmb as due to stock-builds in the East Coast, the Gulf Coast, Rocky Mountain and +2.13 mmb. Cushing stock unexpected plunged -1.05 mmf to 34.01 mmb. Utilization rate climbed high er to 82.5%.

Concerning oil products, gasoline stockpile rose -1.66 mmb to 219.33 mmb while distillate slid -2.16 mmb to 170.06 mmb. Gasoline production increased +3.66% to 9.05M bps, imports soared +10.03% to 0.779M bpd and demand added +0.9% to 8.91M bpd. Distillate demand surged for the first time in 3 weeks, by +6.75%, to 3.95M bpd. This, together with declines in production (-0.12%) and imports (-25.53%), resulted in the contraction of distillate stock.

Crude oil price jumped to as high as 81.53 after the report as the rise in crude inventory was below expectations.

Weekly change in inventory as of 15/10/10

Comparison between API and EIA reports: Forecast (using API's inventory level)

API collects stockpile information on a voluntary basis from operators of refineries, 76% of the time, using data in the past 4 years.

Source: Bloomberg, API, EIA