U.S. Petroleum Weekly – 7 April 2010

Crude oil stocks rose 2.0 million barrels for week ending 2 April; Gasoline stocks decreased for 2.5 million barrels; Distillate stocks rose 1.0 million barrels; Propane/propylene stocks increased 2.4 million barrels; Other oils stocks rose 0.9 million barrels; Total crude oil and petroleum stocks were 7.2 million barrels higher than the week before.

Refinery utilization rose from 82.6% to 84.5%.

Crude oil and petroleum product net imports were at 10.7 million barrels. All categories of petroleum stocks are still at elevated levels.

Refiners are ramping up capacity in anticipation of higher gasoline demand while crude oil and product inventories are approaching record highs. The oil price has hit the post Lehman high in time when OPEC spare capacity is at multi year high and investments in Iraqi fields will surely increase production. My take on this that we are in the middle of cheap money fueled speculative bubble. But as it is the case with bubbles the situation could last. I have put my money where my mouth is and yesterday shorted the crude oil.

Chart 1. Crude Oil Futures

Sourcs: StockCharts.com

Chart 2. Weekly Change in U.S. Crude Oil and Distillates Stocks

Source: EIA

Chart 3. U.S. Total Crude Oil, Gasoline and Distillate Ending Stocks

Source: EIA

Chart 4. U.S. Refinery Capacity, Inputs, and Production

Source: EIA

Chart 5. Weekly U.S. Total Crude Oil and Petroleum Products Imports and Exports

Source: EIA

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