Summary of Weekly Petroleum Data for the Week Ending June 26, 2009
U.S. crude oil refinery inputs averaged nearly 15.0 million barrels per day during the week ending June 26, down by 39 thousand barrels per day from the
previous week's average. Refineries operated at 87.0 percent of their operable capacity last week. Gasoline production rose last week, averaging 9.2
million barrels per day. Distillate fuel production increased last week, averaging about 4.2 million barrels per day.
U.S. crude oil imports averaged nearly 9.4 million barrels per day last week, up 79 thousand barrels per day from the previous week. Over the last four weeks, crude oil imports have averaged nearly 9.2 million barrels per day, 790 thousand barrels per day below the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 979 thousand barrels per day. Distillate fuel imports averaged 165 thousand barrels per day last week.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 3.7 million barrels from the previous week. At 350.2 million barrels, U.S. crude oil inventories are above the upper boundary of the average range for this time of year. Total motor gasoline inventories increased by 2.3 million barrels last week, and are in the lower half of the average range. Both finished gasoline inventories and gasoline blending components increased last week. Distillate fuel inventories increased by 2.9 million barrels, and are above the upper boundary of the average range for this time of year. Propane/propylene inventories increased by 3.7 million barrels last week and are above the upper limit of the average range. Total commercial petroleum inventories increased by 4.4 million barrels last week, and are abovethe upper limit of the average range for this time of year.
Total products supplied over the last four-week period has averaged 18.4 million barrels per day, down by 5.8 percent compared to the similar period last year. Over the last four weeks, motor gasoline demand has averaged nearly 9.2 million barrels per day, up by 0.9 percent from the same period last year. Distillate fuel demand has averaged about 3.4 million barrels per day over the last four weeks, down by 9.4 percent from the same period last year. Jet fuel demand is 13.2 percent lower over the last four weeks compared to the same four-week period last year.
Black Blade: This week's report is SLIGHTLY BEARISH to NEUTRAL given the overall increase in inventories. If not for
foreign imports of refined fuels we would have a net draw on inventories. Nevertheless, the weak US dollar is the primary reason for strength in commodities
and the constant threat of inflation, stagflation and even hyperinflation will continue to support most commodities regardless of demand and the crumbling
global economy. Of course OPEC has been surprisingly disciplined in self-enforcing production quotas which is also supportive for crude oil. Meanwhile, we
remain invested solely in hard assets and very select trusts and master limited partnerships.
