U.S. crude stockpiles fell sharply last week due to a surge in exports to a more than a two-year high, while production neared pre-pandemic levels, the Energy Information Administration (EIA) said on April 20.
Crude inventories fell by 8 million barrels in the week ended April 15 to 413.7 million barrels, compared with analysts’ expectations in a Reuters poll for a 2.5 million-barrel rise.
“Strong exports have been driven by a pull to Europe and we should expect strength in the weeks ahead,” said Matt Smith, lead Americas analyst at Kpler.
That was driven by a surge in exports, which rose to 4.3 million bbl/d in the most recent week, the most since March 2020, while imports fell to their lowest since April 2021, a reflection of worldwide demand for crude as Russian exports have fallen since its invasion of Ukraine in February.
Those exports offset an injection of 4.7 million barrels from U.S. strategic reserves as part of the White House’s efforts to lower fuel prices overall.
U.S. production rose, hitting 11.9 million bbl/d, its highest since May 2020, at a point when oil companies were starting to reduce output in response to the worsening of the coronavirus pandemic.
Refinery crude runs rose by 194,000 bbl/d last week, increasing refinery utilization rates by 1 percentage point to 91%of total capacity.
That came even as overall demand has slipped somewhat in the U.S., as product supplied, a measure of demand, fell to its lowest on a four-week moving basis since June last year.
U.S. gasoline stocks fell by 761,000 barrels in the week to 232.4 million barrels. Distillate stockpiles, which include diesel and heating oil, fell by 2.7 million barrels to 108.7 million barrels, hitting levels not seen since May 2008.
Oil prices rose on the data, with U.S. crude futures gaining $1.07 to $103.63/bbl, while Brent added 75 cents to $107.98/bbl.
2022-05-13 - Black Bay is a private equity firm based in New Orleans focusing on investments in the North American energy sector requiring up to $30 million of equity capital.
2022-03-03 - “The Anadarko Basin is making a comeback,” said Aaron Ketter, Devon Energy vice president, during a keynote address at DUG Midcontinent.
2022-05-10 - Houston needs to be rebranded as a partner in the energy transition versus an obstruction to the future of energy, industry veteran Bobby Tudor told attendees of Hart Energy’s Energy Transition Capital Conference on May 10.
2022-05-18 - Things have changed for the upstream sector and the first quarter proves it, according to energy analyst Subash Chandra, who shared several of his takeaways at Hart Energy’s DUG Permian Basin and Eagle Ford conference and exhibition on May 16.
2022-02-28 - Shell said the decision to quit the joint ventures in Russia will lead to impairments. Shell had around $3 billion in non-current assets in these ventures in Russia at the end of 2021, it said.