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The Week In Numbers for the Week Ending 8-12-2016

Each week, we strive to provide you a bare bones summary of what happened to the price of WTI, Natural Gas, and Brent Crude. In addition, we summarize the major reports from Genspace, API, and EIA on Inventory Data. And we also throw in the rig count for good measure.

WTI Open on August 8, 2016:

$41.99

WTI as of 12:00 on August 12, 2016: $44.34
   
Brent Open on August 8, 2016: $44.34
Brent as of 12:00 PM August 12, 2016: $46.66
   
Natural Gas Open on August 8, 2016: $2.749
NG as of 12:00 PM on August 12, 2016: $2.591

On August 9, 2016, API reported its weekly inventory draw for the prior week. The news was bitter sweet. According to API, U.S. Crude inventories unexpectedly increased by 2.09 million barrels. This compares to a decrease of 1,300,000 barrels last week. Gasoline inventories decreased by 3.9 million barrels compared to a decrease of 450,000 barrels last week. One thing that has been concerning is the gasoline build during summer driving season. This would be a very large draw and overall positive for the market.

On August 10, 2016, the Energy Information Administration released weekly data for the prior week.   The EIA weekly report, included the following important notes:

-       U.S. crude oil refinery inputs averaged 16.6 million barrels per day during the week ending August 05, 2016, about 255,000 barrels per day less than the previous week’s average. Refineries are operating at 92.2% capacity.

-       U.S. Crude imports averaged about 8.4 million barrels per day last week, down by 344,000 barrels per day from the previous week.

-       U.S. commercial crude inventories increased by 1.1 million barrels from the previous At 523.6 million barrels, U.S. crude oil inventories remain at historically high levels fro this time of year. Total motor gasoline inventories decreased by 2,800,000 barrels last week, well above the upper limit of the average range.

On August 11, 2016, the Energy Information Administration released weekly data for the prior week for natural gas storage. Working gas in storage was 3,317 Bcf as of Friday 05, 2016. This represents a net increase of 29 Bcf from the previous week.

On August 11, 2016, Genscape released Cushing Inventory data for this week. Cushing is the largest oil storage tank in the world, and is the settlement point for crude oil futures traded on the New York Mercantile Exchange. According to Genscape, inventory decreased 271,000 barrels at the Cushing settlement point from the beginning of the week until August 9, 2016.  

On Friday, August 12, 2016 Baker Hughes released the weekly rig count data. The U.S. oil rig count rose by 15 to 396. The gas rig count increased by 2 to 83, and miscellaneous rigs remained at two, taking the total up 17 to 481. This is the seventh weekly increase and largest one week increase since July 2015.

 

By: Ty Chapman

Five Star Metals, Inc.

Raising the Bar for Customer Service and Quality

Twitter: @FSM_TY

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Ty’s Take for the Week Ending 8-12-2016