By the Numbers

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.

On July 05, 2016, Genspace released Cushing Inventory data for the prior 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 Genspace, Inventory unexpectedly increased by 230, 026 barrels at the Cushing settlement point.

 On July 06, 2016, API reported its weekly inventory draw for the prior week. According to API, US Crude inventories fell 6,700,000 barrels. This compares a decrease of 3,900,000 barrels last week, Gasoline inventories fell 3,600,000 barrels as well. The gasoline draw is particularly interesting because it seems to indicate refineries cut back on throughput.

On July 07, 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 16.7 million barrels per day during the week ending July 1, 2016, 800 barrels per day less than the previous week’s average. Refineries are operating at 92.5% capacity.

-           - U.S. Crude imports averaged about 8.4 million barrels per day last week, up by 808,000 barres per day from the previous week.

-           - U.S. commercial crude inventories decreased by 2.2 million barrels from the previous week. At 524.4 million barrels, U.S. crude oil inventories are at historically high levels fro this time of year.

Unfortunately, the EIA report was not what we hoped for and markets reacted badly shortly after the report was released. Analysts had generally expected a higher draw. The net effect was that oil traded lower after the release of the report. The report does seem to indicate some demand side weakening.

To read more of the report, visit the EIA’s website at: http://www.eia.gov/petroleum/supply/weekly/

On Friday, July 8, 2016 Baker Hughes released the weekly rig count data. The US oil rig count rose by 10 to 351. The number of gas rigs fell by 1 to 88 and miscellaneous rigs were unchanged at 1, taking the total to 440. Canada added 5 rigs.

Baker Hughes also released its monthly international rig total.   Internationally, the rg count shrunk by 28 last month, bringing the total count to 927. This is a 3 percent drop for the month and a 19 percent drop year-over-year.