In the recent EIA energy report, which was published yesterday, and pertaining crude oil price and petroleum stocks, there is an analysis of the major producers and refineries of oil financial reports for the third quarter of 2010. The main results show that the major producers and refineries in the US performed better compare to 3Q09 and to previous quarters in 2010. They have shown higher profits which were mainly generated by higher oil and gas prices during that quarter, and higher production (probably related to higher demand for crude oil) by major producers, which only further contributed to their higher than expected earnings.
The figure below shows the average monthly US production by thousands of barrels per day. The figure does show a steady rise during 3Q10, however there was a fall in the 4Q10 only to a steep rise on December 2010. Also, there was an ongoing rise in crude oil price (see here). Thus, there is a small chance that the optimistic news from 3Q10 will be a bit less optimistic due to the decline in production in the first couple of months, but just a small chance… the price effect will probably prevail.
Crude oil price
Crude oil price (WTI) weekly average was higher for the week of January 28th by 3.3% compare to the previous week’s average price. On average, crude oil price (WTI) daily change was 0.29%, and its price increased by 3 % from beginning to end of the week.
On the other hand, the gasoline average retail price declined for the first in nine weeks, this time by nearly a penny per gallon fall from last week’s average to reach 3.10 $/g which is 0.44 $/g higher than for the same period in 2010.
Petroleum Stocks, production and consumption
Petroleum stocks in the US have increased for the fourth straight week, as it rose by 0.3%, an increase of nearly 5.5 million barrels of crude oil to reach 1,801 million barrels – the highest level since December 17 2010.
The main reason for this rise is related to the increase in Stocks of Total Gasoline, which inclined by 2.7% a 6.1 million barrels rise – reaching 236 million barrels.
Furthermore, finished motor gasoline stocks rose for second straight week as the stocks increased by 2.1% or 1.4 million barrels, reaching 68.5 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 5.417 on a four week average, lower than last week by 0.1%, and also lower by 0.3% compare to the production for the same time last year;
Crude oil imports has increased for the week of January 28th (4 week average) by 1.6% compare to the week of 21/1/2011, and by 7.6% compare to last year’s same time.
These two figures present a picture that there is an ongoing rise in US dependency in foreign oil, despite the recent state of the union address by President Barack Obama, promising the US nation that US government will work to do the reverse.
The crude oil refinery inputs in the US has increased by 4.7% for the week of January 28th (4 week average) as it reached 14.374 (million b/d) compare to the same week last year; however, it fell by 1.2% compare to the previous week of 21/1/2011.
The snowfall and extreme cold weather throughout the U.S. mainly in the Northeast and Midwest 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 3.8 million barrels – a 9.2% decline – reaching 37.9 million barrels – the lowest level since April 2010.
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