US DoE Crude Oil Inventories (W/W) 24 Sep: 4.578M (est -1.652M; prev -3.481M) - Surprise build this week - total of 10.0mb across all products, demand remains healthy - details

 EIA - Summary of Weekly Petroleum Data for the week ending Sep 24, 2021 

 US DoE Crude Oil Inventories (W/W) 24 Sep: 4.578M (est -1.652M; prev -3.481M) - Distillate (W/W): 0.385M (est -1.648M; prev -2.555M) - Cushing (W/W): 0.131M (prev -1.476M) - Gasoline (W/W): 0.193M (est 1.400M; prev 3.475M) - Refinery Utilization (W/W): 0.6% (est 0.5%; prev 5.4%)

After eight weeks of draws, EIA follows API with a relatively healthy surprise build this week despite just under 20% of Gulf production still offline. Also saw very small builds in gasoline and distillates (gasoline was less than expected) but much less than API reported. Cushing, where WTI is calculated, had a very small build as well.

Overall the result was a the first net build in seven weeks of 10.0mb in all petroleum products (after cumulative draws of around -45mb the previous six weeks). Total inventories now at 1,851.7 mb incl SPR (SPR had a draw of -0.9mb).

Crude - Production increased another 500kbd after last week's 500kbd increase as more production was restarted bringing production to 11.1mbd just -400kbd below the highs of the year. Net imports fell by -124kb as exports bounced back increasing 211kb and imports were up only 87kbd (after increasing 1.3mbd last week). Adjustment jumped up to 1.3mbd which is a pretty high level. Refining throughput at 88.1% up from 87.5% of capacity last week. That is down from 91.3% three weeks ago, but big improvement improvement from the 82% two weeks ago. Crude inventories are now -7% below the 5-year average (was -8% last week).

Products - Builds/draws detailed in table below.  As noted gasoline and distillates had small builds as did fuel ethanol and jet fuel.  Bigger builds in "other oils" and propane.  Residual fuels had the only draw (small).  Gasoline remained at -3% below 5-yr avg (was -3% last week), distillates to -12% (was -14%), and propane -19% below (was -21%).   As I've noted repeatedly, that propane deficit means stocks are too low to be heading into winter adding to a precarious inventory situation on heating fuels overall.

Demand - Overall demand fell moderately as big decreases in "other oils" (which are blending components) and distillates.  Smaller decreases in propane and jet fuel.  Those offset strength in gasoline and to a lesser extent residual fuel oils.  Demand remains around 2019 levels.  Reminder, these are at the wholesale (not retail) level.  4-week average of total demand is up 13.7% y/y.  

US implied oil demand (product supplied) fell by 754kbpd w/w to 20.391mbpd 
w/w changes by key product in kbpd
gasoline +503
jet fuel -60
distillate -451
residual fuel oil +119
propane/propylene -119
other oils -674

Here's total demand.  As you can see it has gotten back to this same week in 2019.  




Here are selected inventories.  Overall inventories remain lowest for this time of year since pre-2015.





To see more content, including summaries of most major U.S. economic reports and my morning and nightly updates go to https://seekingalpha.com/user/15085872/instablogs for more recent or https://sethiassociates.blogspot.com for the full history.











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