In its October 16 update, the US Energy Information Administration reported that US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 8.0 million barrels from the previous week. At 476.6 million barrels, US crude oil inventories remain near levels not seen for this time of year in at least the last 80 years.
This is presenting both challenges and opportunities for the storage terminal sector, according to Peter Weaver with the International Liquid Terminals Association. Much of the existing crude storage capacity is full, and some terminal operators are switching existing storage tanks into crude service. In addition, new storage capacity is under construction.
“We haven’t been able to quantify how many storage tanks have been converted to crude service or how much new tankage is being built, but we know it is happening,” Weaver told Bulk Transporter. “We’re reaching a point where inventories could exceed storage capacity.”
The EIA report also stated that US crude oil refinery inputs averaged over 15.3 million barrels per day during the week ending October 16, 2015, 78,000 barrels per day more than the previous week’s average. Refineries operated at 86.4% of their operable capacity last week. Gasoline production decreased last week, averaging 9.6 million barrels per day. Distillate fuel production increased last week, averaging over 4.7 million barrels per day.
US crude oil imports averaged 7.5 million barrels per day last week, up by 156,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged about 7.4 million barrels per day, 2.7% below the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 709,000 barrels per day. Distillate fuel imports averaged 58,000 barrels per day last week.
Total motor gasoline inventories decreased by 1.5 million barrels last week, but are above the upper limit of the average range. Finished gasoline inventories increased while blending components inventories decreased last week.
Distillate fuel inventories decreased by 2.6 million barrels last week but are in the middle of the average range for this time of year. Propane/propylene inventories fell 0.6 million barrels last week but are well above the upper limit of the average range. Total commercial petroleum inventories increased by 1.5 million barrels last week.
Total products supplied over the last four-week period averaged about 19.4 million barrels per day, up by 1.0% from the same period last year. Over the last four weeks, motor gasoline product supplied averaged about 9.1 million barrels per day, up by 3.1% from the same period last year. Distillate fuel product supplied averaged over 3.8 million barrels per day over the last four weeks, up by 5.2% from the same period last year. Jet fuel product supplied is up 6.8% compared to the same four-week period last year. ♦