US crude stocks rose a larger-than-expected 6.156 million barrels to 363.125 million barrels as imports surged 1.213 million b/d to 9.266 million b/d the week ending April 22, an analysis of the oil data released Wednesday by the US Energy information Administration showed.
Analysts polled by Platts had projected a build of 1.6 million barrels. At 363.125 million barrels, US crude stocks were 16.182 million barrels above the five-year average and 5.305 million barrels above year-ago levels.
The only region where crude stocks fell was the Midwest where stocks edged down 482,000 barrels to 105.837 million barrels with a drop of 142,000 b/d in imports to 1.146 million b/d behind the decline in inventories.
Stocks at the NYMEX delivery point in Cushing, Oklahoma fell 738,000 barrels to 40.388 million barrels, the second consecutive decline in that region.
Inputs to refineries were essentially unchanged at 14.629 million b/d, leaving imports as the primary driver of the inventory-build.
But import data can be erratic. On a four-week moving average, crude imports at 8.71 million b/d were 724,000 b/d below the same four weeks in 2010.
While crude continued to pile up, product inventories trended lower, falling 3.247 million barrels to 670.455 million barrels. This is the lowest level since October 2008 that US product stocks have been.
Product stocks were 3.915 million barrels below the five-year average and 44.631 million barrels below year-ago levels.
Within products, gasoline inventories dropped another 2.508 million barrels to 205.588 million barrels while stocks of middle distillates declined 1.805 million barrels to 146.530 million barrels.
Gasoline stocks have now cumulatively declined 35.508 million barrels over the past 10 weeks, leaving inventories 3.049 million barrels below the five-year average and 18.097 million barrels below year-ago levels.
The drop in gasoline stocks was caused by a 327,000 b/d decline in output, which was unable to offset a 197,000 b/d jump in imports to 1.050 million b/d.
Gasoline stocks on the Atlantic Coast, home of the NYMEX delivery point for its RBOB futures contract, declined 1.663 million barrels to 49.674 million barrels, the lowest level since October 2008.
Implied gasoline demand continued to show early signs of erosion due to high retail prices with the four-week moving average at 9.061 million b/d, or 150,000 b/d below year-ago levels. Average retail gasoline prices the week ending April 25 at $3.879/gal were $1.03/gal above year-ago levels.
Week-over-week gasoline demand inched up 85,000 b/d to 9.148 million b/d. Unlike gasoline, however, implied demand for middle distillates dropped 375,000 b/d to 3.737 million b/d week-over-week. On a four-week moving average demand for middle distillates at 3.83 million b/d was 259,000 b/d above year-ago levels.
Both stocks of ULSD and heating oil were lower, but given the arrival of abnormally warm temperatures across the Atlantic Coast, demand for winter fuels should drop precipitously.
With output of middle distillates down 103,000 b/d to 4.058 million b/d and imports dropping 172,000 b/d to 121,000 b/d, a decrease in middle distillate inventories was inevitable.
At 146.53 million barrels, stocks of middle distillates were 19.633 million barrels above the five-year average, but 5.29 million barrels below year-ago levels.
