By: z24blackjet @ CWEI
Interesting EIA Commentary
This is taken from the EIA weekly summary, before today's report was released.
>>>In looking at U.S. crude oil inventories (excluding those in the Strategic Petroleum Reserve), analysts are watching not just the absolute level, but also the trend. Data released earlier today indicate that as of August 3, U.S. crude oil inventories stand at 340.4 million barrels, well above the average range, and 34 million barrels above the five-year average. This would seem to indicate a market flush with crude oil. Yet, keen analysts are note that U.S. crude oil inventories fell by nearly 11 million barrels in the last two weeks. Despite a drop last week, crude oil inputs to refineries during the last two weeks refinery has averaged 16.0 million barrels per day. At this rate and with domestic crude oil production averaging about 5.2 million barrels per day over the last two weeks, it would take 10.8 million barrels per day of imported crude oil to keep crude oil inventories from falling. While this is a weekly import level attained 3 times so far in 2007, it is hardly an average or expected level. Should crude oil imports continue to average about 10.1 million barrels, as they have the last two weeks, while runs are maintained at their recent level, crude oil inventories would fall by an average of about 5 million barrels each week, putting inventories back within the average range by the end of this month.<<<
Note the import level (10.8 million barrels per day) required to maintain the current oil inventory. If refinery run rates increase, the oil inventory level will drop by even more than 5 million barrels per week.
--Z |
