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OIL INVENTORY INDICATORS
Key observations for USA inventory data
Crude Oil
q US commercial crude oil inventories were down by 3.4 Mn bbls wow to
365.55 Mn bbls in the week ended 10th June'11 mainly due to fall in
imports from Canada on account of shut down of key pipeline from
Canada having a capacity of 591 Kbpd. This drained Midwest stocks. Imports from Canada fell 381 kbpd for the week to their lowest level since
December'10. The pipe line reopened for service on June 5.
q In addition to lower imports, a 5.2 percentage point rise in the
Midwest's refinery utilization rate also helped draw down stockpiles.
q Stocks have fallen back from a two-year high at the end of May, but at
365.6 Mn bbls they are still nearly 7 percent above their five-year average
at a time when Saudi Arabia is preparing to step up production to
around 10 Mn bopd.
q Stocks at the Cushing, Oklahoma, the key delivery point for the US light
sweet crude contract dropped by 1.14 Mn bbls to 37.76 Mn bbls after
touching an all-time high of 41.90 Mn bbls in CY11.
q The crude supply cover was down by 0.5 days to 24.5 days.
Gasoline
q While gasoline supplies rose for the sixth continuous week, by 0.57 Mn
bbls wow, to 215 Mn mainly on account of higher production. Also, this
has offset the lower import levels and stronger demand. This decline is
in continuation of an eleven-week trend (from February 11 to April 29).
Also, in this period supplies fell by more than 36 Mn bbls.
q Gasoline imports averaged 1115 Kbopd which is 43k bbls lower.
q Gasoline production dropped to 8.7 Mn bopd while distillate fuel production decreased to 4.2 Mn bopd.
q Motor gasoline total inventory supply cover was down by 0.1 days to
23.3 days.
Distillate
q Distillate stocks, includes heating oil and diesel fuel, were down by 105
Mn bbls as against analyst expectations of rise. The fall in distillate fuel
supplies was mainly due to lower production and imports, partially offset by moderate demand.
q Distillate fuel oil total inventory supply cover was flat at 37 days.
Refinery Rates
q Refiners reduced processing rates by 1.1% wow and 1.8% YoY to 86.1%.
Imports
q Imports of crude into the US gained 38 Kbopd wow to 8.6 Mn bopd.
q Finally, we can conclude that crude and distillate stockpiles moved
downwards, while gasoline supplies rose for the sixth straight week.
Meanwhile, refiners reduced processing rates by 1.1%.
q The IEA raised the pressure on OPEC to increase output by forecasting a
steep rise in oil demand in H2CY11.In June'11, Saudi Arabia is expected
to raise output towards 10 Mn bopd, up from 8.86 Mn bopd in May'11.
Also, the IEA might release strategic reserves of crude oil to ensure adequate supply and support the global economy. We believe this will
marginally cool off the crude prices which will be positive for Indian
economy
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
OIL INVENTORY INDICATORS
Key observations for USA inventory data
Crude Oil
q US commercial crude oil inventories were down by 3.4 Mn bbls wow to
365.55 Mn bbls in the week ended 10th June'11 mainly due to fall in
imports from Canada on account of shut down of key pipeline from
Canada having a capacity of 591 Kbpd. This drained Midwest stocks. Imports from Canada fell 381 kbpd for the week to their lowest level since
December'10. The pipe line reopened for service on June 5.
q In addition to lower imports, a 5.2 percentage point rise in the
Midwest's refinery utilization rate also helped draw down stockpiles.
q Stocks have fallen back from a two-year high at the end of May, but at
365.6 Mn bbls they are still nearly 7 percent above their five-year average
at a time when Saudi Arabia is preparing to step up production to
around 10 Mn bopd.
q Stocks at the Cushing, Oklahoma, the key delivery point for the US light
sweet crude contract dropped by 1.14 Mn bbls to 37.76 Mn bbls after
touching an all-time high of 41.90 Mn bbls in CY11.
q The crude supply cover was down by 0.5 days to 24.5 days.
Gasoline
q While gasoline supplies rose for the sixth continuous week, by 0.57 Mn
bbls wow, to 215 Mn mainly on account of higher production. Also, this
has offset the lower import levels and stronger demand. This decline is
in continuation of an eleven-week trend (from February 11 to April 29).
Also, in this period supplies fell by more than 36 Mn bbls.
q Gasoline imports averaged 1115 Kbopd which is 43k bbls lower.
q Gasoline production dropped to 8.7 Mn bopd while distillate fuel production decreased to 4.2 Mn bopd.
q Motor gasoline total inventory supply cover was down by 0.1 days to
23.3 days.
Distillate
q Distillate stocks, includes heating oil and diesel fuel, were down by 105
Mn bbls as against analyst expectations of rise. The fall in distillate fuel
supplies was mainly due to lower production and imports, partially offset by moderate demand.
q Distillate fuel oil total inventory supply cover was flat at 37 days.
Refinery Rates
q Refiners reduced processing rates by 1.1% wow and 1.8% YoY to 86.1%.
Imports
q Imports of crude into the US gained 38 Kbopd wow to 8.6 Mn bopd.
q Finally, we can conclude that crude and distillate stockpiles moved
downwards, while gasoline supplies rose for the sixth straight week.
Meanwhile, refiners reduced processing rates by 1.1%.
q The IEA raised the pressure on OPEC to increase output by forecasting a
steep rise in oil demand in H2CY11.In June'11, Saudi Arabia is expected
to raise output towards 10 Mn bopd, up from 8.86 Mn bopd in May'11.
Also, the IEA might release strategic reserves of crude oil to ensure adequate supply and support the global economy. We believe this will
marginally cool off the crude prices which will be positive for Indian
economy
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