U.S. Supply of Refined Fuels and Crude Oil Hit Lowest Levels Since 2015
February 10, 2022
The propane inventory update said the propane supplies were down 1.914 million barrels, putting total reserves at 47.838 million barrels – down 3.707 million barrels from last year at this time. The drawdown to inventories was less than the market expected at 3.57 million and less than the five-year average for this reporting week of 2.826 million. Domestic demand bounced back to over 2 million barrels per day as the cold snap that impacted most of the U.S. certainly helped. Exports were down as reports of canceled cargoes were in the news. Midwest supplies were down 1.113 million barrels, putting total Midwest stocks at 14.769 million barrels, and last year at this time, there were 13.351 million barrels, so we are 1.418 million barrels ahead of the previous year currently. Gulf Coast inventories were down 989,000 barrels, putting Gulf Coast stocks at 23.494 million barrels. At the same point last year, there were 28.797 million barrels, a 5.303 million barrel difference.
The DOE inventory report had crude oil stocks down 4.76 million barrels, putting total reserves at 410.387 million barrels. Last year at this time, there were 469.014 million, a deficit of 58.627 million barrels. Gasoline stocks were down 1.64 million barrels putting total reserves at 248.393 million, and last year there were 256.412 million at 8.019 million barrels difference. Distillate stocks were down 1.644 million barrels, putting total stocks at 121.814 million, and last year at this time, there were 161.106 million barrels, a 39.292 million barrel deficit. The drop in year-over-year inventory levels is a significant number and a concern to prices if diesel demand remains strong.
According to S&P Global Platts, OPEC and its allies fell further behind its oil output quotas, with the group falling a record 700,00 BPD short of its collective quotas in January.
According to the EIA, U.S. supplies of refined fuels and crude oil have not been this low since 2015, excluding the SPR. Inventories have been declining steadily since the summer of 2020