Fredericksburg Leader

REFINERIES GET SLAMMED BY ARCTIC BLAST, GASOLINE PRODUCTION FALLS 16%

The Energy Information Administration (EIA) released its weekly report today on the status of petroleum inventories in the United States. Here are some highlights:

CRUDE OIL INVENTORIES:Crude oil inventories increased by 1.7 million barrels (MMbbl) to a total of 420.6 MMbbl. At 420.6 MMbbl, inventories are 2.8 MMbbl above last year (0.7%) and are about 4% below the five-year average for this time of year. Inventories in Cushing, OK, the NYMEX delivery point, rose 0.3 million barrels to a total of 25.3 million barrels. The Strategic Petroleum Reserve (SPR) decreased 2.7 million barrels from the prior week to 372.4 million barrels and stands 37.3% below the year ago level.

Domestic crude oil production rose 100,000bpd to 12.1 million barrels per day, 300,000 bpd higher than the year ago period. While Alaska oil production was down 1,000bpd to 453,000bpd, production in the Lower 48 rose 100,000bpd to 11.6 million barrels per day.

GASOLINE INVENTORIES:Gasoline inventories decreased by 0.3 million barrels (MMbbl) to a total of 222.7 MMbbl. At 222.7 MMbbl, inventories are down 10.1 MMbbl, or 4.3% lower than a year ago and are 6% below the five-year average for this time of year.

Here’s how individual regions and their gasoline inventory fared:

East Coast (+3.1 MMbbl)Midwest (-0.8 MMbbl)Gulf Coast (-4.1 MMbbl)Rockies (-0.2 MMbbl)West Coast (+1.6 MMbbl)It’s important to note which regions saw increases/decreases as this information likely drives prices up (in the case of falling inventories) or down (in the case of rising inventories).

DISTILLATE (DIESEL, HEATING OIL) INVENTORIES:Distillate inventories decreased by 1.4 million barrels to a total of 118.8 MMbbl. At 118.8 MMbbl, inventories are down 8.1 MMbbl, or 6.4% lower vs. a year ago. Distillate inventories stand about 14% below the five-year average for this time of year.

IMPLIED GASOLINE DEMAND:Gasoline supplied to the market amounted to 7.51 million barrels per day (MMbpd), or 1,813,000 bpd higher than the previous week. Ending 2022, implied demand (“products supplied”) is 3.1% lower versus 2021, per the EIA.

REFINERY OUTPUT/UTILIZATION:Refinery utilization decreased by 12.4 percentage points vs. last week’s numbers to reach 79.6%. Gasoline production decreased to 8.5 million barrels per day while distillate fuel production decreased to 4.0 million barrels per day last week.

Utilization rates for the last week were as follows:

East Coast: 84.8% (-5.1%)Midwest: 79.2% (-12.1%)Gulf Coast: 77.7% (-16.6%)Rocky Mountains: 78.2% (-7.5%)West Coast: 85.8% (-1.4%)These percentages show how much of a region’s overall capacity was used to refine oil. It’s important to note these percentages, because the lower the utilization percent, the lower output — which has a direct impact on local gasoline prices. If refiners in your region have low output, you’re more likely to see gas prices rise.

OVERALL SUPPLY:Total oil stocks in the United States (excluding the SPR) are up by 10.5 MMbbl (0.9%) versus a year ago and stand at 1.205 billion barrels (excluding the Strategic Petroleum Reserve). Including the SPR, total stocks are down 210.8 million barrels (-11.8%) versus a year ago.

IMPORTS/EXPORTS:The U.S. imported 5.71 MMbpd of crude oil per day last week, down 540,000 bpd vs. the previous week, while crude oil exports rose by 742,000 bpd to 4.21 MMbpd. Total motor gasoline imports last week averaged 551,000 bpd. The U.S. also imported 113,000 bpd of distillate fuels. However, during the same timeframe, the U.S. exported 1,057,000 bpd of finished gasoline and 1,553,000 bpd of distillates. In total, U.S. companies exported 10.55 MMbpd of oil and petroleum products.

Before the report was released, the price of West Texas Intermediate crude oil was up 66 cents to $73.50 per barrel. Just after the report was released, oil was up 94 cents per barrel.

Original source can be found here