US oil stocks are down more than expected

US oil stocks are down more than expected
US oil stocks are down more than expected

Oil stocks fell in the US by more than analysts’ expectations during the past week, while gasoline and distillates stocks rose.

Today, Wednesday (November 23, 2022), the weekly report – issued by the US Energy Information Administration – showed that crude stocks decreased by 3.7 million barrels during the week ending November 18, bringing the total to 431.7 million barrels.

The Wall Street Journal estimated that US oil stocks declined by 800,000 barrels, according to what was monitored by the Energy Research Unit.

While the strategic reserves of oil stocks decreased by 1.6 million barrels, bringing the total to 390.5 million barrels, according to the report.

This means that had it not been for the withdrawal from the strategic reserve, the commercial oil stocks in the United States would have fallen by 5.3 million barrels, but the impact on the markets depends on the change in the commercial stock, according to what was monitored by the Energy Research Unit.

According to a law approved by the US Congress, withdrawals from the strategic stockpile usually occur, with the aim of mitigating the budget deficit by covering annual sales from the reserve and its management costs.

America’s oil stocks

The decline in oil stocks in the United States came with the rise in crude imports and exports, according to the report, which was reviewed by the Energy Research Unit.

Oil imports in America rose by about 1.504 million barrels per day during the past week, to reach 7.063 million barrels per day.

US oil exports rose by 380,000 barrels per day, bringing the total to 4.242 million barrels per day.

This means that net US oil imports – which include the strategic reserve – rose by 1.124 million barrels per day last week, to reach 2.821 million barrels per day.

The “energy” platform usually ignores oil production data in the United States, which comes within the weekly reports of crude stocks, because it does not reflect the actual levels. It depends on future expectations.

The following graph shows crude oil production in the United States from the beginning of 2019 until August 2022, according to the latest data issued by the Energy Information Administration.:

gasoline stocks

Gasoline inventories in the US rose by 3.1 million barrels over the past week, to reach 211 million barrels.

Distillate stocks – which include diesel, heating fuel and others – rose by about 1.7 million barrels, to record 109.1 million barrels.

Analysts’ estimates indicated a decline in gasoline and distillate stocks by 200 and 700 thousand barrels, respectively.

consumption of oil derivatives

The consumption of oil derivatives in the United States decreased by 1.210 million barrels per day, to reach 19.878 million barrels per day during the past week.

The consumption of gasoline, jet fuel and distillates in America decreased by about 416, 134 and 18 thousand barrels per day, respectively.

While the total consumption of oil derivatives increased by 0.1% compared to the average of the past 4 weeks on an annual basis, despite the decline in the consumption of gasoline and distillates by 7% and 3.5%, respectively.

Aviation fuel consumption in America also decreased by 2.4% over the past 4 weeks on an annual basis.

Import details

Oil imports in the United States rose to 7.063 million barrels per day during the past week, compared to 5.559 million in the previous week.

The increase in US oil imports came from 4 countries, led by Canada, which witnessed a rise of 768 thousand barrels per day.

US imports from Saudi Arabia, Iraq and Colombia also increased by about 474, 244 and 27 thousand barrels per day, respectively.

While America’s oil imports from Nigeria, Libya and Ecuador declined by 138, 88 and 59 thousand barrels per day, respectively, and decreased from Brazil and Mexico.

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The article is in Arabic

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