The EIA analyzes in its recent weekly report on crude oil price and petroleum stocks, the transportation sector in the US. According the report, the transportation sector accounted for 72% of the total petroleum demand in 2009, and all things being equal, this sector will also dominate the demand for oil in 2011, which is estimated at 13.7 MMbbl/d out of the total 18.9 MMbbl/d US crude oil demand.
In this weekly review I will address the main findings of the EIA report for the week ending on January 21st on crude oil price, production, imports and consumption.
Crude oil price
Crude oil price (WTI) weekly average was lower for the week of January 21st by 1.4% compare to the previous week’s average price. On average, crude oil price (WTI) daily change was -1%, and its price decreased by 3.74% from beginning to end of the week.
The gasoline average retail price inclined for the eighth straight week, this time by nearly 0.006$/g from last week’s average to reach 3.11 $/g which is 0.41 $/g higher than for the same period in 2010.
Petroleum Stocks, production and consumption
Petroleum stocks in the US have increased for the third straight week, last week’s report showed a moderate rise of 0.1%; in this week’s report the stocks rose also by 0.1%, an increase of nearly 2.3 million barrels of crude oil.
The main reason for this rise is related to the increase in Stocks of Total Gasoline, which inclined by 1.1% a 2.4 million barrels rise – reaching 230 million barrels.
Furthermore, finished motor gasoline stocks broke the ongoing fall as the stocks increased by 0.4% or 0.3 million barrels, reaching 67.1 million barrels – nearing the lowest levels even recorded by the EIA in the past 17 years.
The average US production (million of barrels a day) was 5.425 on a four week average, lower than last week by 1.1%, and also lower by 0.6% compare to the production for the same time last year;
Crude oil imports has increased for the week of January 21st (4 week average) by 1.6% compare to the week of 14/1/2011, and by 6.1% compare to last year’s same time.
The crude oil refinery inputs in the US has decreased by 5.3% for the week of January 21st (4 week average) as it reached 14.546 (million b/d) compare to the same week last year; however, it did fall by 1.4% compare to the previous week of 14/1/2011.
The cold weather throughout the U.S. and mainly in the east coast is one of the main reasons for the continuous rise in propane consumption; as a result, propane stocks continue to fall dramatically; according to the latest report, they fell by 3.3 million barrels – a 7.4% decline – reaching 41.8 million barrels – the lowest level since July 2010.
As a result, propane prices continue to rise, according to the EIA report, the average residential price in the U.S. is 3.48 $/g, a 0.03$/g increase, which is higher by 0.58 $/g, for the same period in 2010.
For further reading (in this site):