Crude inventories rose less than expected. You have to be a little bit careful how you read the headlines.
NEW YORK (Dow Jones)--U.S. crude inventories rose less than analysts' expectations last week, according to data released Thursday by the U.S. Department of Energy.
Crude oil stockpiles rose 822,000 barrels to 346.7 million barrels, below analysts' average forecast for an increase of 1.1 million barrels. The American Petroleum Institute, an industry group, reported a 163,000-barrel build in crude inventories in its weekly report released Wednesday.
Both sets of data were released a day late because of the Presidents Day holiday on Monday.
Crude oil futures added to earlier gains following the release of the DOE's report at 11 a.m. Light, sweet crude for April delivery is up $1.22, or 1.2%, at $99.32 a barrel on the New York Mercantile Exchange. Front-month March reformulated gasoline blendstock, or RBOB, recently traded up 4.45 cents, or 1.6%, at $2.7594 a gallon. March heating oil rose 3.02 cents, or 1%, at $2.9565 a gallon.
Overall stockpiles of crude oil and products remain above normal ranges seen this time of the year [Here is the key!!!!]
Gasoline stockpiles fell 2.8 million barrels to 238.3 million barrels, the department's Energy Information Administration said in its weekly report. Analysts expected an increase of 300,000 barrels, according to a Dow Jones Newswires survey of analysts.
Distillate stocks, which include heating oil and diesel fuel, declined 1.3 million barrels to 159.9 million barrels, compared with analysts' forecast for a draw of 1 million barrels.
Refining capacity utilization fell 1.8 percentage points to 79.4%. Analysts had expected runs to increase 0.4 percentage point.
API pegged refinery utilization at 78.1% last week, down 2.5 percentage points. The industry group reported that showed that stockpiles of gasoline fell 1.6 million barrels and distillates fell 534,000 barrels.
This is very interesting. It appears that oil inventories are growing but gasoline inventories are slowing due to reduced refinery utilization. Thus, the refiners expect this spike in oil prices to be temporary and will wait till oil drops to increase utilization. Once again this says it all. No shortages of supply, seasonally high inventories, on the highest stockpiles in 5 years, and no pickup in demand. The price of oil is pure speculation in the futures markets. The liberal gov. gave Globex the power to regulate itself so they have essentially done nothing. They need to crack down on margin rates for speculators. Until they do this the market will be driven by speculators free to create recession waves. It is very dangerous to allow speculators to control necessary commodities.
doug
NEW YORK (Dow Jones)--U.S. crude inventories rose less than analysts' expectations last week, according to data released Thursday by the U.S. Department of Energy.
Crude oil stockpiles rose 822,000 barrels to 346.7 million barrels, below analysts' average forecast for an increase of 1.1 million barrels. The American Petroleum Institute, an industry group, reported a 163,000-barrel build in crude inventories in its weekly report released Wednesday.
Both sets of data were released a day late because of the Presidents Day holiday on Monday.
Crude oil futures added to earlier gains following the release of the DOE's report at 11 a.m. Light, sweet crude for April delivery is up $1.22, or 1.2%, at $99.32 a barrel on the New York Mercantile Exchange. Front-month March reformulated gasoline blendstock, or RBOB, recently traded up 4.45 cents, or 1.6%, at $2.7594 a gallon. March heating oil rose 3.02 cents, or 1%, at $2.9565 a gallon.
Overall stockpiles of crude oil and products remain above normal ranges seen this time of the year [Here is the key!!!!]
Gasoline stockpiles fell 2.8 million barrels to 238.3 million barrels, the department's Energy Information Administration said in its weekly report. Analysts expected an increase of 300,000 barrels, according to a Dow Jones Newswires survey of analysts.
Distillate stocks, which include heating oil and diesel fuel, declined 1.3 million barrels to 159.9 million barrels, compared with analysts' forecast for a draw of 1 million barrels.
Refining capacity utilization fell 1.8 percentage points to 79.4%. Analysts had expected runs to increase 0.4 percentage point.
API pegged refinery utilization at 78.1% last week, down 2.5 percentage points. The industry group reported that showed that stockpiles of gasoline fell 1.6 million barrels and distillates fell 534,000 barrels.
This is very interesting. It appears that oil inventories are growing but gasoline inventories are slowing due to reduced refinery utilization. Thus, the refiners expect this spike in oil prices to be temporary and will wait till oil drops to increase utilization. Once again this says it all. No shortages of supply, seasonally high inventories, on the highest stockpiles in 5 years, and no pickup in demand. The price of oil is pure speculation in the futures markets. The liberal gov. gave Globex the power to regulate itself so they have essentially done nothing. They need to crack down on margin rates for speculators. Until they do this the market will be driven by speculators free to create recession waves. It is very dangerous to allow speculators to control necessary commodities.
doug
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