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Weekly US oil data
Bearish fundamentals help justify selloff
It‘s hard to spin any of this week‘s DOE data with a bullish tone. Crude oil stocks
grew moderately (though the build was concentrated in the Gulf Coast, rather than in
the Midwest, a region already brimming with crude supply) and can be partially
explained by the power outages at Texas City. Product inventories also increased
(though this was driven primarily by a seasonal build in ‗other products‘). Previous
momentum seen in demand growth faltered as well, and it should be no surprise that
crude seems to be consolidating lower.
The February batch of US monthly demand data was released last week. For the
most part, the revisions (between weekly data and the more reliable monthly
number) across products were lower, resulting in a total demand revision of -1.4% to
0.0% annual growth. The most noticeable drop off in momentum came from middle
distillates, a category which functions as something of a barometer for US economic
growth. January demand growth of +6.0%y/y fell to just +0.3%y/y in February. The
weekly data had been wrongly reporting +2.3% of annual demand growth. Also
important was the downward revision in gasoline demand growth, from a +1.0%
approximation, to a 0.0% actual value. However, this growth showed an acceleration
from January‘s -1.3%y/y number (when driving was limited due to severe cold and
winter storms). The third significant revision came from ‗Other products‘, where
demand growth was some -4.2% lower than expected, at -0.4%y/y. This category is
cyclical, but had shown momentum through 4Q10 and into 2011.
Top three numbers in today’s weekly US oil data
Crude oil inventories added +3.4mbs – The build was concentrated in the
Gulf Coast region. Levels at Cushing, OK grew +0.1mbs and remain just off
the recent record high.
Downstream stocks reversed trend upward, +4.1mbs, though inventories
in gasoline and middle distillates drew lower (-1.0mbs and -1.4mbs,
respectively).
Demand growth turns lower at +1.4% (four week MA, y/y), driven by
declining demand for both transport fuels and stationary fuels.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Weekly US oil data
Bearish fundamentals help justify selloff
It‘s hard to spin any of this week‘s DOE data with a bullish tone. Crude oil stocks
grew moderately (though the build was concentrated in the Gulf Coast, rather than in
the Midwest, a region already brimming with crude supply) and can be partially
explained by the power outages at Texas City. Product inventories also increased
(though this was driven primarily by a seasonal build in ‗other products‘). Previous
momentum seen in demand growth faltered as well, and it should be no surprise that
crude seems to be consolidating lower.
The February batch of US monthly demand data was released last week. For the
most part, the revisions (between weekly data and the more reliable monthly
number) across products were lower, resulting in a total demand revision of -1.4% to
0.0% annual growth. The most noticeable drop off in momentum came from middle
distillates, a category which functions as something of a barometer for US economic
growth. January demand growth of +6.0%y/y fell to just +0.3%y/y in February. The
weekly data had been wrongly reporting +2.3% of annual demand growth. Also
important was the downward revision in gasoline demand growth, from a +1.0%
approximation, to a 0.0% actual value. However, this growth showed an acceleration
from January‘s -1.3%y/y number (when driving was limited due to severe cold and
winter storms). The third significant revision came from ‗Other products‘, where
demand growth was some -4.2% lower than expected, at -0.4%y/y. This category is
cyclical, but had shown momentum through 4Q10 and into 2011.
Top three numbers in today’s weekly US oil data
Crude oil inventories added +3.4mbs – The build was concentrated in the
Gulf Coast region. Levels at Cushing, OK grew +0.1mbs and remain just off
the recent record high.
Downstream stocks reversed trend upward, +4.1mbs, though inventories
in gasoline and middle distillates drew lower (-1.0mbs and -1.4mbs,
respectively).
Demand growth turns lower at +1.4% (four week MA, y/y), driven by
declining demand for both transport fuels and stationary fuels.
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