Article by ForexTime
Crude oil prices are lower on Thursday after dipping below 40 for the first time since August on Wednesday. The impetus for the decline was a report from the Department of Energy that showed a small draw in crude oil stocks. While distillate stocks edged lower, the demand continued to be very strong. Jet fuel demand was also strong, which help draw down the large increase in imports.
According to the Energy Information Administration (EIA), U.S. crude oil refinery inputs averaged 16.1 million barrels per day during the week ending November 13, 2015, 137,000 barrels per day more than the previous week’s average. Refineries operated at 90.3% of their operable capacity last week. The increase led to a higher demand for domestic crude
According to the EIA, U.S. commercial crude oil inventories increased by 0.3 million barrels from the previous week. This compares to the 2 million barrel increase expected by analysists. Stocks in key areas like Cushing Oklahoma where the NYMEX crude oil contract is priced actually increased by 1.5 million barrels putting downward pressure on prices. Gasoline inventories increased by 1.0 million barrels last week, and are well above the upper limit of the average range. Distillate fuel inventories decreased by 0.8 million barrels last week.
Total demand for products over the last four-week period averaged about 19.8 million barrels per day, down by 0.2% from the same period last year. Over the last four weeks, gasoline demand averaged over 9.2 million barrels per day, up by 2.0% from the same period last year. Distillate fuel demand averaged about 4.1 million barrels per day over the last four weeks, up by 7.1% from the same period last year. Jet fuel demand is up 3.7% compared to the same four-week period last year.
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