Oil Prices Decline As Stockpiles Rally – Review for December 5

The prices of crude oil resumed their downward trend during the day. Energy Information Administration published its petroleum and oil weekly update in which the EIA estimates a drop in U.S consumption for oil and a rise in production during 2013. During last week, U.S stockpiles bounced back: the total U.S oil and petroleum stockpiles rose by 5.9 million bl; conversely, crude oil stockpiles declined by 2.3 million bl. The oil production, refinery input and imports rose again last week.

Here is a weekly report for the week ending on November 28th 2012 of the U.S oil and petroleum market:

Crude Oil Stockpiles

For the week ending on November 28th, U.S. Petroleum and crude oil stockpiles rose by 5.9 million barrels and reached 1,787.5 million barrels. The current oil stockpiles are also higher than the quota from year: the current crude oil stockpiles are 37.5 million barrels above oil stockpiles for the same week in 2011.

U.S. Ending Stocks of crude oil, on the other hand, declined by 2.3 million barrels and reached 1,066.7 million barrels.

The U.S. Ending Stocks of Total Gasoline sharply rose by 3.85% compared with last week’s stocks; it reached 212.1 million barrels.

In the chart below are the developments of petroleum and oil stockpiles and price of oil in recent years. During the last few years the lagged linear correlation between WTI oil price and current oil stockpiles was -0.185. This mid-weak correlation postulates, assuming all things equal, oil prices may decrease during the forthcoming week.

u.s. ending stocks oil  2012 December 5

Petroleum production refinery inputs and imports (for the week of November 28th)

During last week, imports, refinery inputs and production rose again.

The four week average of U.S. production (million of barrels a day) for the week of November 28th rose to 6.764; it is also 15.1% above the average production at the same week in 2011.

The crude oil refinery inputs (4 week average) also rose to 15.026 (million b/d), a 1.3% gain compared with the week of 23/11/2012; inputs were also 1.4% higher than the same week last year.

Crude oil imports increased to 7.997 (for 4 week average) compared with the week of 23/11/2012; they were 9.6% below the average during the same week last year.

Below is a detailed review of the information listed above (for the week of November 28th):

Production and Imports Oil Refinery Inputs 2012 December 5

Propane Stocks

Propane stocks fell by 337 thousand barrels and reached 72,510 thousand barrels.

Crude Oil, Gasoline and Diesel Prices for the Week Ending on November 28th

The average price of U.S gasoline retail decreased by 4 cent to $3.39/g, which is $0.10/g higher than the price during the same week in 2011.

The national average Diesel price also fell by a penny as it reached $4.03/g; this price is $0.10/g lower higher last year’s average price at same time.

A detailed analysis of oil prices for the week ending on November 28th is herein.

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