Lower Production and Imports Lead to Tightening Supply
- U.S. crude oil inventories fell last week due to lower production and imports
- Commercial crude oil stockpiles excluding SPR decreased by 1.6 million barrels
- Cushing, Okla., oil storage is nearing capacity
- Production and imports dropped while exports increased
- Refinery capacity use declined slightly
- Gasoline and distillate fuel stocks rose slightly
The U.S. Energy Information Administration (EIA) reported a decrease in commercial crude oil stockpiles excluding the Strategic Petroleum Reserve by 1.6 million barrels, reaching 417.5 million barrels and falling 4% below the five-year average. Production fell by 100,000 barrels per day to 13.2 million barrels daily, while imports dropped by 545,000 barrels per day to 6.3 million barrels daily. Crude exports increased by 1.3 million barrels a day to 4.6 million barrels daily. Refinery capacity use decreased by 0.7 percentage points to 92.1%. Gasoline and distillate fuel stocks rose slightly, with gasoline demand increasing by 298,000 barrels per day to 8.8 million barrels daily and distillate fuel demand up by 240,000 barrels per day at 3.8 million barrels daily.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about the changes in U.S. crude oil inventories, gasoline, and distillate fuel stocks based on data from the U.S. Energy Information Administration. It includes relevant details about production, imports, exports, and refinery capacity use. The article also presents expert opinions without presenting them as universally accepted truths. The information is consistent with expectations and provides a clear comparison between actual and forecasted changes in stockpiles.
Noise Level: 2
Noise Justification: The article provides relevant and accurate information about changes in U.S. crude oil inventories, gasoline, and distillate fuel stocks based on data from the U.S. Energy Information Administration. It includes expert opinions and discusses potential consequences of tightening supplies. However, it lacks a broader context or analysis of long-term trends or implications for the energy market.
Public Companies: New York Mercantile Exchange (N/A), U.S. Energy Information Administration (N/A), The Wall Street Journal (N/A)
Private Companies: Price Futures Group
Key People: Phil Flynn (Senior Market Analyst), Jerome Powell (Fed Chair)
Financial Relevance: Yes
Financial Markets Impacted: U.S. crude oil inventories and related markets
Financial Rating Justification: The article discusses changes in U.S. crude oil inventories, gasoline, and distillate fuel stocks which can impact the prices of these commodities and affect financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
Move Size: The market move size mentioned in this article is a decrease of 1.6 million barrels in crude oil stockpiles and a 4% drop from the five-year average for the time of year.
Sector: Energy
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks
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