Oil Prices Plunged While Oil Stockpiles Slightly Rose

The Prices of crude oil changed direction and after they had increased on at the beginning of the week, on Wednesday they have tumbled down. The recent EIA report show the oil stockpiles slightly increased in the U.S. The petroleum and oil weekly report by Energy Information Administration presents an analysis on retail gasoline prices. According to the report, the prices are expected to fall in the weeks to follow. During last week U.S stockpiles rose: the total U.S oil and petroleum stockpiles increased by 0.7 million bl; moreover, crude oil stockpiles rose by 1.7 million bl. The oil production increased again last week while imports and refinery input declined.

Here is a weekly update for the week ending on November 2nd 2012 of the U.S oil and petroleum market:

Crude Oil Stockpiles

For the week ending on November 2nd, U.S. Petroleum and crude oil stockpiles rose by 0.7 million barrels and reached 1,793.9 million barrels. The current oil stockpiles are also higher than the quota as of last year: the current crude oil stockpiles are 48.5 million barrels above oil stockpiles levels of the parallel week in 2011.

U.S. Ending Stocks of crude oil increased by 1.76 million barrels and reached 1,069 million barrels.

The U.S. Ending Stocks of Total Gasoline rose by 1.44% compared with last week’s stocks; it reached 202.37 million barrels.

In the chart below are the developments of petroleum and oil stockpiles and WTI crude oil price in recent years. During the last couple of years the lagged linear correlation between WTI oil price and current oil stockpiles was -0.188. This relation suggests, assuming all things equal, oil prices may edge down during the upcoming week.

Weekly U.S. Ending Stocks Crude Oil and WTI spot oil price 2012 November 7

Petroleum production refinery inputs and imports (for the week of November 2nd)

During last week, production rose while refinery inputs and imports decreased.

The four week average of U.S. production (million of barrels a day) for the week of November 2nd rose to 6.641; it is also 13.4% above the average production at the same week in 2011.

The crude oil refinery inputs (4 week average) decreased to 14.785 (million b/d), a 0.1% drop compared with the week of 26/10/2012 was also 1.8% higher than the same week last year.

Crude oil imports also decreased to 8.276 (for 4 week average) compared with the week of 26/10/2012; they were also 5.1% below the average during the same week last year.

Below is a detailed review of the information listed above (for the week of November 2nd):

Crude Oil Production and Imports Crude Oil Refinery Inputs 2012 November 7

Propane Stocks

Propane stocks declined by 327 thousand barrels and reached 73,620 thousand barrels.

Crude Oil, Gasoline and Diesel Prices for the Week Ending on November 2nd

The average price of U.S gasoline retail declined by 8 cents to $3.49/g, which is still $0.07/g higher than the price during the same week in 2011.

The national average Diesel price slipped by two cents as it reached $4.01/g; this price is also $0.12/g higher than last year’s average price at same time.

A detailed analysis of oil prices for the week ending on November 2nd is herein.

For further reading: