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Crude Oil Rallies on Robust Inventory Draw
The combination of reduced refinery runs and declining imports led to a larger than expected draw in crude oil inventories. Despite warmer than expected weather and record highs in the North East, heating oil inventories decline in the latest week.
According to the Department of Energy, U.S. crude oil refinery inputs averaged about 16.5 million barrels per day during the week ending December 18, 2015, 143,000 barrels per day less than the previous week’s average. Gasoline production decreased last week, averaging over 9.3 million barrels per day. Distillate fuel production decreased last week, averaging over 4.9 million barrels per day
U.S. crude oil imports averaged over 7.3 million barrels per day last week, down by 986,000 barrels per day from the previous week. Gasoline imports last week averaged 334,000 barrels per day. Distillate fuel imports averaged 168,000 barrels per day last week.
The Energy Information Administration reported that U.S. commercial crude oil decreased by 5.9 million barrels from the previous week. This compared to the 1 million barrel decline expected. Gasoline inventories increased by 1.1 million barrels last week, but are in the lower half of the average range. Distillate fuel inventories decreased by 0.7 million barrels last week.
On the demand front total products demand over the last four-week period averaged over 20.0 million barrels per day, down by 0.8% from the same period last year. Over the last four weeks, gasoline demand averaged 9.3 million barrels per day, up by 0.7% from the same period last year. Distillate fuel demand averaged 3.6 million barrels per day over the last four weeks, down by 7.4% from the same period last year. Jet fuel demand is up 2.9% compared to the same four-week period last year.
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