US oil inventories fell more than analysts expected last week, while gasoline and distillate inventories were mixed up and down.
Crude inventories in the United States decreased by 9.2 million barrels during the week ending January 19, 2024, bringing the total to 420.7 million barrels, according to a recent report, a copy of which was obtained by the Energy Research Unit.
The expectations of analysts at Standard & Poor’s Global indicated that US oil inventories would decline by only about 3 million barrels, which means that the results were more than double that.
The extremely cold wave on the Gulf of Mexico coast contributed to the decline in oil production in shale fields in the United States, as oil production in North Dakota fell by half, which contributed to the decline in stocks over the past week.
In contrast, the strategic reserve of oil inventories rose by 0.9 million barrels per day over the past week, bringing the total to 356.5 million barrels.
This means that without the increase in the strategic reserve, commercial oil inventories in America would have decreased by 8.3 million barrels, but the impact on the markets depends on the change in commercial reserves, according to what was monitored by the Energy Research Unit.
US oil inventories decline
The significant decline in US oil inventories comes with a decline in crude imports and exports over the past week, according to the periodic report issued by Energy Information Administration American Today, Wednesday, January 24, 2024.
America’s oil exports decreased by 595 thousand barrels per day, bringing the total to 4.43 million barrels per day, and imports decreased by about 1.84 million barrels per day, reaching 5.58 million barrels per day.
This means that net US oil imports – which include the strategic reserve – decreased by 1.24 million barrels per day, over the past week, bringing the total to 1.14 million barrels per day.
The “Energy” platform usually ignores the US oil production data, which comes within the weekly inventory reports, because it does not reflect the actual levels. It depends on future expectations.
The following graphic – prepared by the Energy Research Unit – shows US crude oil production from the beginning of 2019 until October 2023:
Gasoline and distillate stocks
Gasoline stocks in the United States rose by about 4.9 million barrels last week, reaching the level of 253 million barrels.
While distillate stocks – which include diesel, heating fuel, and others – decreased by 1.4 million barrels, reaching 133.3 million barrels.
Analysts’ estimates indicated an increase in gasoline and distillate stocks by about one million barrels, and a decline in distillate stocks by only about 81 thousand barrels.
Consumption of petroleum derivatives
Total consumption of petroleum derivatives in the United States decreased by 312 thousand barrels per day during the past week, reaching 19.55 million barrels per day.
This came with a decrease in gasoline consumption by 388 thousand barrels per day, while consumption of derivatives and jet fuel increased by 139 thousand and 218 thousand barrels per day, respectively.
Total consumption of petroleum derivatives also increased by about 3.3%, compared to the average of the past 4 weeks on an annual basis, with gasoline and jet fuel consumption increasing by 3.7% and 1.6%, respectively, and distillate consumption decreasing by 6.9%.
Details of US oil imports
US oil imports fell from 7.42 million barrels per day to 5.58 million barrels per day over the past week.
The decline in US oil imports came from 5 countries, led by Canada and Mexico, with their exports to America declining by about 918 thousand and 400 thousand barrels per day, respectively.
Crude imports from Saudi Arabia, Ecuador and Colombia also decreased by 332 thousand, 147 thousand and 140 thousand barrels per day, respectively, according to what was monitored by the Energy Research Unit.
In contrast, US oil imports from Iraq, Nigeria, and Libya increased by about 142,000, 52,000, and 30,000 barrels per day, respectively, while imports from Brazil decreased by only two thousand barrels per day.
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2024-01-24 15:48:28
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