Wednesday, June 9, 2021

Weekly US Crude Oil In Storage Dropped 5.2 Million Bbls -- June 9, 2021

Link here.

Weekly EIA petroleum report:

  • US crude oil in storage decreased by 5.2 million bbls;
  • US crude oil in storage now stands at 474.0 million bbls, 4% below the already-fat-five-year average;
  • refiners are operating at 91.3% of their operable capacity (trending nicely);
  • US imported 6.6 million bbls of crude oil on average each day last week; an increase of 1.0 million bbls from the week before:
  • US crude oil imports are averaging about 6.2 million bbls per day, about 2% less than the same four-week period last year;
  • distillate fuel inventories increased by 4.4 million bbls last week but still 5% below the five-year average for this time of the year;
  • jet fuel supplied was up 95.1% compared with same four-week period last year;


  1. I see a bearish weekly report. Total crude and distillates inventory up by 15.5 mmbbls. Minus about 6 mmbbls imports, about 10mmbbl increase in total stocks
    IMHO with crack spreads high and hurricane season starting in weeks, and would guess is a lot of storage tanks being filled along the Colonial pipeline route with product.

    As always JMHO.

    1. So much of this simply seems like "white noise," or background noise.

    2. Due to the Colonial pipeline shutdown last month and how quickly gasoline and jet fuel availability was gone, I'm guessing that for the areas supplied are getting more refined fuel stocks, likely getting political pressure to encourage this. There's a ton of tank farms along the pipeline route. Quick way to loose votes is to wait in line for overpriced fuel for your vehicle. Couple of years ago Texas had gasoline shortage due to Gulf Coast hurricanes and floods. The oil industry has many challenges now they have to deal with the ESG mandates going on, go ask Shell or Exxon.

    3. I was thinking the same thing --- about storage tanks being refilled. I'm actually pretty optimistic about all this as an investor -- I don't think the American public is on board with all this ESG stuff and that will present some interesting investment possibilities.

    4. Midstream and downstream companies need to do a better job in keeping refined fuel in stock and ready to ship to end users when problems occur, weather, pipeline leaks, software problems.

    5. Bearish report or not, earlier this week, the weekly EIA report -- WTI continues to move higher today.