Energy

Crude Oil Prices Skid as Refining Slows

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Source: Thinkstock
The U.S. Energy Information Administration (EIA) released its weekly petroleum status report Wednesday morning. U.S. commercial crude inventories increased by 3.7 million barrels last week, maintaining a total U.S. commercial crude inventory to 362.3 million barrels, and they have moved to the upper half of the five-year range for this time of the year.

Total gasoline inventories decreased by 1.6 million barrels last week and remain in the middle of the five-year average range. Total motor gasoline supplied (the EIA’s measure of consumption) averaged 9 million barrels a day for the past four weeks, up by 0.4% compared with the same period a year ago.

Distillate inventories increased by 300,000 barrels last week, but they remain below the lower limit of the average range. Distillate product supplied averaged 3.7 million barrels a day over the past four weeks, down by 2.6% when compared with the same period last year. Distillate production averaged 5.9 million barrels a day last week, down about 200,000 barrels a day compared with the prior week’s production.

Tuesday evening, the American Petroleum Institute (API) reported that crude inventories rose by 3.3 million barrels in the week ending September 12, together with a decline of 1.2 million barrels in gasoline supplies and an increase of 1.0 million barrels in distillate supplies. For the same period, analysts surveyed by Platts estimated a decrease of 400,000 barrels in crude inventories, a decrease of 300,000 barrels in gasoline inventories and distillate inventories were unchanged.

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Before the EIA report, West Texas Intermediate (WTI) crude was trading down at around $94.20 a barrel, about 0.7% below Wednesday’s closing price of $94.88. The WTI price slipped to around $93.95 shortly after the report was released.

For the past week, crude imports averaged more than 8.1 million barrels a day, up by about 493,000 barrels a day over the previous week. Refineries were running at 93% of capacity, with daily input of more than 16.3 million barrels a day, about 28,000 barrels a day below the previous week’s average.

WTI crude prices have risen from below $92 a barrel a week ago to more than $94 a barrel. The inventory increase reflects lower refinery throughput last week. Pump prices continue to drop as winter-grade fuel makes its way to retailers.

According to AAA, the current national average pump price per gallon of regular gasoline is $3.373, down from $3.428 a week ago and from $3.457 a month ago. Last year a gallon of regular cost $3.512 on average in the United States.

Here is a look at how share prices at three U.S. producers reacted to this latest report.

Exxon Mobil Corp. (NYSE: XOM) traded down about 0.1%, at $97.32 in a 52-week range of $84.79 to $104.76.

Chevron Corp. (NYSE: CVX) traded up fractionally, at $125.06 in a 52-week range of $109.27 to $135.10.

Continental Resources Inc. (NYSE: CLR) traded up about 1.5% to $75.61, after a two-for-one stock split that was effected last week. The stock’s split-adjusted 52-week range is $50.31 to $80.91. Continental is the largest producer in the Bakken shale play and reported softer than expected results Wednesday morning.

ALSO READ: Top 5 Energy Stocks to Own When Oil Pullback Ends

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