US gasoline stocks fell last week, keeping levels below the five-year average for the 11th week in a row despite a drop in implied demand, according to US Energy Information Administration data released Wednesday.
Stocks are particularly tight on the US Atlantic Coast -- home of the New York delivery point for NYMEX RBOB futures. USAC stocks fell 1.24 million barrels last week to 52.219 million barrels, expanding the deficit of the five-year average to 9.97%, from 6.59% the prior week, and putting USAC stocks below the five-year low for the week.
USAC gasoline stocks are at their lowest level since November 11, 2011.
Gasoline imports to USAC fell 265,000 b/d to 596,000 b/d, an eight-week low. US gasoline stocks fell 1.815 million barrels to 205.91 million barrels the week ended Friday, putting stocks at 3.56% below the five-year average.
US West Coast gasoline inventories are also on the tight side. USWC stocks at 27.272 million barrels the week ending July 13 were down 651,000 barrels on the week, and 5.91% below the five-year average. Still, that's up from an 18% deficit in mid-May, when refiners were processing just 2.259 million b/d of crude because of maintenance, putting them at 76.5% of capacity. Refiners have since upped runs to 2.607 million b/d, or 90.9% of capacity the week ending July 13.
US gasoline stock declines were offset somewhat by a 445,000-barrel increase to Gulf Coast gasoline stocks, pushing the region's total to 70.884 million barrels for the week reported.
Gulf Coast gasoline stocks increased despite the decline in net crude inputs to refiners and a 0.4% decline in refinery utilization, dropping run rates to 93.8% of capacity.
Implied demand fell 289,000 b/d to 8.628 million b/d last week, falling for the second week in a row. Gasoline implied demand continues to lag prior year levels, supplies have narrowed, with both production and imports slipping.
US gasoline production fell 424,000 b/d to 8.894 million b/d, while imports were down 284,000 b/d at 635,000 b/d.
In contrast to gasoline, US distillate stocks have risen lately. Stocks at 123.531 million barrels were up 2.619 million barrels on the week, and up 5.731 million barrels from the week ending June 29.
That still left stocks 13.64% below the five-year average.
The stock increase was led by diesel. Combined low and ultra low sulfur diesel stocks at 97.626 million barrels last week were up 5.467 million barrels from the week ending June 29, the EIA data showed, as production climbed for the third week in a row.
Combined low and ULSD production at 4.466 million b/d last week was up from 4.104 million b/d the week ending June 22, matching the all-time high set the week ending January 6.
CRUDE STOCKS DROP AS IMPORTS TO GULF DECLINE
US crude oil stocks declined 809,000 barrels to 377.391 million barrels the week ended Friday, according to the EIA.
Analysts polled by Platts Monday expected US crude stocks to decline by 1.4 million barrels.
The drop in crude stocks comes as imports to the US Gulf Coast declined 171,000 b/d to 4.339 million b/d. Net inputs of crude oil to US refiners declined 236,000 b/d to 15.538 million b/d, led by a 131,000 b/d decline in Gulf Coast net inputs, down to 8.01 million b/d for the week reported, according to the EIA.
Gulf Coast stocks increased 133,000 barrels to 187.538 million barrels despite the decline in imports, likely due to the decline in net inputs.
Crude oil stocks at Cushing, Oklahoma -- the delivery point for the NYMEX crude oil futures contract -- declined 500,000 barrels to 46.282 million barrels, the lowest Cushing stocks have been in nine weeks.
US imports of crude from Saudi Arabia fell 298,000 b/d to 1.233 million b/d the week ending July 13, according to the EIA data.
The drop may have been the result of the 325,000 b/d crude unit outage at Motiva's 600,000 b/d Port Arthur, Texas, refinery. Motiva, which is jointly owned by Shell and Saudi Refining, had been bringing in extra supplies of Saudi crude ahead of the plant's planned expansion, although the new crude unit was shut on June 9 and was expected to remain down for several months.
A source close to the refinery said Monday that Saudi Aramco since mid-June was putting on hold the Arab Heavy supplies bound for the new unit. Still, it may be too early to tell if last week's drop in imports from Saudi Arabia reflects this cut.
Imports from the kingdom, for instance, fell nearly 500,000 b/d the week ending June 22, only to jump by a similar amount the following week.
