Crude Inventories Fall Sharply, Price Up Slightly

The American Petroleum Institute estimate called for a weekly crude inventory decline of 6 million barrels and an increase of 869,000 barrels to the gasoline supply. Crude prices, which had been slipping today, are up about 0.1% on the inventory drop.

Total gasoline inventories decreased by 1 million barrels last week and remain in the lower half of the five-year average range. Dow Jones estimated a drop of just 400,000 barrels. Over the past four weeks, gasoline supplied has declined by2.2% compared to the same period last year. Total motor gasoline supplied averaged 9 million barrels a day for the four weeks a drop of 1.7% compared with the same period a year ago.

For the past week, crude imports averaged 8.2 million barrels a day, a drop of 510,000 barrels from the previous week. Refineries were running at 91.2% of capacity, with daily input of 15.4 million barrels a day, down by 273,000 barrels a day from the previous week.

Distillate inventories, which include diesel fuel, rose by 1 million barrels last week and are below the lower limit of the average range. Dow Jones had estimated a 700,000 barrel increase. Distillate product supplied averaged 3.7 million barrels a day last week, down 4.4% when compared with the same period last year. Distillate production totaled 4.7 million barrels a day last week.

The United States Oil ETF (NYSEMKT: USO) is up 0.3% at $36.10 in a 52-week range of $29.02-$42.30.

The United States Gasoline ETF (NYSEMKT: UGA) is up 0.6% at $58.98 in a 52-week range of $44.65-$59.22.

Paul Ausick