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RTTNews storyCrude Oil Inventories Unexpectedly Decline

Wed Dec 03 11:18:00 2008 EST

(RTTNews) - Crude oil inventories were unexpectedly lower in the recent week, according to data released Wednesday morning by the Energy Information Administration. The draw was the first in 10 weeks for crude stockpiles. Gasoline inventories also dropped.

U.S. commercial crude oil inventories decreased 400,000 barrels in the week ended Nov. 28. Analysts were looking for a build of about 1.2 million barrels. At 320.4 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year.

Total motor gasoline inventories decreased by 1.6 million barrels last week, and are below the lower boundary of the average range. Finished gasoline inventories fell last week while gasoline blending components inventories increased during this same time.

Distillate fuel inventories declined by 1.7 million barrels, and are below the lower boundary of the average range for this time of year. Propane/propylene inventories remained flat last week and are slightly below the lower limit of the average range.

Total commercial petroleum inventories decreased by 400,000 barrels last week, and are in the middle of average range for this time of year.

Total products supplied over the last four-week period has averaged nearly 19.3 million barrels per day, down by 6.2 percent compared to the similar period last year. Over the last four weeks, motor gasoline demand has averaged 8.9 million barrels per day, down by 3.2%, distillate fuel demand has averaged nearly 4.0 million barrels per day, down by 2.2% and jet fuel demand is 16.7% lower over the last four weeks.

Crude oil prices saw little immediate impact from the data. Light sweet crude for January delivery moved to $47.28, up 32 cents on the session. Prices inched as high as $48.10 immediately following the EIA report.

For comments and feedback: contact editorial@rttnews.com

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