Weekly Petroleum Report -- EIA -- July 23, 2014

For week ending July 18, 2014.

Some data points:

• crude oil inputs averaged 28,000 bopd less than previous week
• refineries operating at 94% capacity -- high capacity
• gasoline production increased by 9 million bbls per day (nice)
• crude oil imports down 20,000 bopd
• US crude oil inventories decreased by 4 million bbls last week
• total motor gasoline inventories increased by 3.4 million bbls last week

Unremarkable.

Unremarkable except that the Obama administration says US refineries are processing a record amount of crude oil. Bakken.com is reporting:

The Energy Information Administration has reported that U.S. refineries have been processing record amounts of oil. Within the past two weeks refinery inputs have exceeded the previous record from the summer of 2005.

Refineries located in the Midwest and Gulf Coast have helped push the increase in production. This is due to the increased access to lower-cost crude oil, improved refining capacities, the growth of domestic demand as well as an increased demand for exports.

In the past Gulf Coast refineries had processed the majority of the Midwest’s gasoline, but because of changes to pipeline infrastructure, the type of product being shipped and the direction of its flow, more incentive has been created for refineries in the Midwest to expand gasoline production.

Gasoline demand graphs here. A bit of "demand destruction"?

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