Wednesday, November 24, 2010

Crude Oil Rallies Above 83 Despite Inventory Gains

Total crude oil and petroleum products stocks declined for the 4th week, by -0.26 mmb to 1106.15 mmb in the week ended November 19. Crude oil inventory unexpectedly gained +1.03 mmb, compared with consensus of a -1.03 mmb drop, to 358.63 mmb with stock rising in 3 out 5 PADDs. Cushing stock also rose +0.56 mmb to 33.63 mmb. Utilization rate climbed +1.5% to 85.5%.

Gasoline inventory increased +1.91 mmb to 209.59 mmb while that for distillate dipped -0.54 mmb to 158.25 mmb. Gasoline demand slipped -1.37% to 8.83M bpd. Imports and production rose +39.50% and +0.12% respectively. Distillate demand claimed +0.63% to 3.80M bpd. Both imports and production soared, by 49.43% and +1.46% respectively.

WTI crude oil jumped to as high as 83.05 after the report, despite stock builds in crude oil and gasoline. A Strong rebound in the stock markets was probably the main reason driving oil prices higher.

Here is a Comparison Between API and EIA Reports


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