Oil Prices Rally While Stockpiles Increase – Review for December 12

The prices of crude oil rallied in the past couple of days. The Energy Information Administration published its petroleum and oil weekly report in which the EIA estimates a decline in the Brent to WTI premium in 2013. During last week, U.S stockpiles slightly rose again: the total U.S oil and petroleum stockpiles increased again by 5.9 million bl; conversely, crude oil stockpiles also rose by 0.8 million bl. The oil production, refinery input and imports increased again last week.

Here is a weekly report for the week ending on December 7th 2012 of the U.S oil and petroleum market:

Crude Oil Stockpiles

For the week ending on December 7th, U.S. Petroleum and crude oil stockpiles increased by 5.9 million barrels and reached 1,793.4 million barrels. The current oil stockpiles are also higher than the quota from year: the current crude oil stockpiles are 41.5 million barrels above oil stockpiles for the same week in 2011.

U.S. Ending Stocks of crude oil also increased by 0.8 million barrels and reached 1,067.5 million barrels.

The U.S. Ending Stocks of Total Gasoline rose by 2.36% compared with last week’s stocks; it reached 217.1 million barrels.

The chart below shows 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, the prices of oil may decline during next week.

u.s. ending stocks oil  2012 December 12

Petroleum production refinery inputs and imports (for the week of December 7th)

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

The four week average of U.S. production (million of barrels a day) for the week of December 7thincreased to 6.799; it is also 15.8% above the average production at the same week in 2011.

The crude oil refinery inputs (4 week average) also rose to 15.215 (million b/d), a 1.3% gain compared with the week of 30/11/2012; inputs were also 2.7% higher than the same week last year.

Crude oil imports increased to 8.154 (for 4 week average) compared with the week of 30/11/2012; they were 7.2% below the average during the same week last year.

Below is a detailed review of the information listed above (for the week of December 7th):

Production and Imports Oil Refinery Inputs 2012 December 12

Propane Stocks

Propane stocks fell by 1,327 thousand barrels and reached 71,183 thousand barrels.

Crude Oil, Gasoline and Diesel Prices for the Week Ending on December 7th

The average price of U.S gasoline retail declined by 5 cent to $3.35/g, which is $0.06/g higher than the price during the same week in 2011.

The national average Diesel price also decreased by four cents as it reached $3.99/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 December 7th is herein.

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