Wednesday, September 1, 2021

US Oil Inventories Drop By A Whopping Seven Million Bbls; This Is Before Hurricane Ida; Dollar Weakens -- And, Yet, WTI Drops In Price -- September 1, 2021

Wow, wow, wow: US oil inventories, 26.5 days. This is the first time in a very long time, the "days of supply" has dropped below 27 days, and this was very, very fast: the previous week was 27.0. days of supply. We have to go back to late 2019 / early 2020 (pre-pandemic), to see an inventory of less than 26.5 days. Link here.

US oil demand: nearly 23 million bbls per day. Link here.  Back in May, 2021: 20.094 million bbls per day; now, nearly 23 million bbls per day.

  • in round numbers, the US consumes 20 million bopd, link here.
  • from Bloomberg, July 30, 2021
    • demand back faster than expected
    • US demand provides signal of return from 2020 travel slump
    • consumption is so strong that the federal EIA pegged May's demand for US oil products at 20.094 million bbls per day; or almost seven percent higher than its original estimate

Link here: natural gas. 

Link here to Brian Sullivan at CNBC:

  • US oil demand is soaring
  • US oil production is declining
  • the Keystone XL carrying oil from Canada to US refineries killed by Resident Biden
  • OPEC and Russia now running the global oil and gas show

While total US demand recovered in June to within 0.5% of pre-covid levels, crude production remains much lower. According to the @EIAgov , crude output in June declined month-on-month from May, at 11.3m b/d (-7.1% below June 19). Total oil liquids was virtually flat m-on-m.

Monthly EIA petroleum report, link here:

  • US crude oil inventories decreased by a whopping 7.2 million bbls (and this was before Hurricane Ida);
  • US crude oil inventories now stand at 425.4 million bbls, 6% below the five-year average
  • refineries operated at 91.3% of their operable capacity, yawn (but this is before Hurricane Ida)
  • US crude oil imports average 6.3 million bpd; up by 183,000 bpd, yawn; this is 13.9% more than the previous four-week period; US crude oil imports average 6.3 million bpd over the past four weeks;
  • propane inventories increased by 0.5 million bbls last week; 20% below the five-year average;
  • distillate fuel inventories decreased by 1.7 million bbls last week; inventories are 9% below the five-year average;
  • jet fuel product supplied was up 51.7% compared with the same four-week period last year

WTI: after the report was released, WTI dropped 0.41%, dropped 28 cents, is now trading at $68.22. 

DXY: 92.430, down 0.210.

Crude oil imports:

Crude Oil Imports





Week (week-over-week)

Date of Report

Raw Data, millions of bbls

Change (millions of bbls)

Four-week period comparison

Week 17

July 8, 2020

7.4

1.400

-8.500%

Week 18

July 15, 2020

7.5

-1.800

-10.200%

Week 19

July 22, 2020

5.9

0.373

-13.500%

Week 20

July 29, 2020

5.1

-0.800

-13.600%

Week 21

August 5, 2020

6.0

0.900

-18.100%

Week 67

June 23, 2021

6.9

0.197

-1.00%

Week 68

June 30, 2021

6.4

-0.500

2.80%

Week 69

July 8, 2021

5.9

-0.500

-2.20%

Week 70

July 14, 2021

6.2

0.347

-0.10%

Week 71

July 21, 2021

7.1

0.900

2.90%

Week 72

July 28, 2021

6.5

-0.600

6.90%

Week 73

August 4, 2021

6.4

-0.075

15.80%

Week 74

August 11, 2021

6.5

-0.036

16.30%

Week 75

August 18, 2021

6.4

-0.064

14.10%

Week 76

August 25, 2021

6.2

-0.193

8.80%

Week 77

September 1, 2021

6.3

-0.183

13.90%

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