The US Oil Industry Fundamental Data For Frame Ended 28 August

$USO, $UGA

On WTI Crude Oil inventory

The US DOE/EIA reported that total Crude Oil and petroleum products stocks added +5.71-M bbl to 1288.91-M bbl in the week ended 28 August.

Crude Oil stockpile came in +4.67-M bbl to 455.43-M bbl as inventory increased in 4 out of 5 PADDs.

Cushing, OK stock came in -0.39-M bbl to 57.31-M bbl. Utilization rate dove 1.7% steadied at 92.8%.

Gasoline inventory dropped -0.27-M bbl to 214.16-M bbl as demand increased 2.71% to 9.44-M bbl. Production came in +0.17% % to 9.80-M BPD, while imports rose +32.54% to 0.84-M BPD.

Distillate inventory added 0.12-M bbl to 149.95-M bbl although demand came in+4.44% to 3.76-M bbl. Production rose +0.35% to 4.92-M BPD, while imports dove 37.4% to 0.08-M bbl during the week.

Crude Oil has fallen this year even US gasoline demand expanded, stimulated by a growing economy and low prices. Total gasoline supplied to the US market rose to an 8-yr high of 9.7-M BPD last month, according to US Department of Energy data.

WTI Crude Oil could fall to as low as 10 bbl as the Organization of Petroleum Exporting Countries (OPEC) engages in a “Price War” with rival producers, testing who will cut output 1st. Iran is soon to release 55-M bbl to the market and will be producing up to 1.5-M BPD in 6 months or so.

Outlook for Crude Oil is due South.

OPEC says it will cut production, and are going to see who can stand lower prices longest, since October of 2014 HeffX-LTN sees that Crude Oil is likely is headed for 20 – 22 bbl in the mid term.

Stay tuned…

HeffX-LTN

Paul Ebeling