Petroleum stocks bounced back with a moderate rise – April 28

In the recent Energy Information Administration petroleum report, there is an analysis of the shift in the US oil production that has been rising for the past couple of years, after it had been declining in the last couple of decades. In 2009 the oil production increase was mainly due to the deepwater development in the Golf of Mexico, while the 2010 increase is mostly due to the rise in horizontal drilling programs and other shale formations.

Here is a summary of the EIA petroleum report about crude oil price and petroleum stocks for the week ending April 22nd:

Petroleum Stocks, production and imports

U.S. Petroleum and oil stocks bounced back and rose by 2.9 million barrels, which is a 0.17% incline compared to the previous week. For the week ending on April 22nd the stocks reached 1,760.1 million barrels. This was the largest injection since March 25th, 2011.

Part of this rise is due to the increase in U.S. Ending Stocks of Crude oil by 0.57% or 6.1 million barrels– reaching 1,089.6 million barrels.

 

The chart below presents the petroleum and oil stocks levels compared to the WTI crude oil prices during 2011.

Weekly U.S. Ending Stocks of Crude Oil and WTI spot oil price 2011 April 22

 

The chart shows that there is strong correlation in the trend between the petroleum and oil stocks and WTI oil prices: as the prices increase the petroleum stocks drop. The linear correlation of these two data series (their weekly percent changes) is -0.12, while their data series (actual figures) have a -0.909 linear correlation.

The four week average US production (million of barrels a day) for the week of April 22nd reached 5.627, a 0.2% above the average level of last week and 2.8% above the average production at the same time last year;

Crude oil imports inclined (4 week average) by 0.4% compared to the week of 15/4/2011, but declined by 7.7% compared to the same time last year.

The crude oil refinery inputs (4 week average) reached 14.142 (million b/d), a decrease of 0.5% compared to the previous week of 15/4/2011.

Below is a detailed recap of the information listed above:

 

US Oil Production and Imports  and Crude Oil Refinery Inputs 2011 April 22

Crude oil price, Gasoline and Diesel prices for the week ending on April 22nd

The average U.S. gasoline retail price inclined last week by 3.5 cents per gallon compared to the previous week’s average, to reach 3.88 $/g, which is 1.03 $/g higher than for the same period in 2010.

The national average Diesel prices fell by 1 cent compared to the previous week as it reached 4.10$/g. which is still 1.02$/g higher than last year’s average price at same time.

 

A detailed analysis on crude oil price for the week of April 22 is herein.

 

In total, during last week there were rises in US production, petroleum stocks, imports and oil prices, and a decline in refineries inputs.

 

Propane

In this recent report, propane stocks rose by 79 thousand barrels – a 0.3% increase – reaching 26.4 million barrels.

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