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Welcome to this week’s Thirsty Thursday: An Inventory Report. Spring is continuing to do its thing with the weather and to celebrate we mixed up some Mezcal Michelada cocktails. Nothing feels more like warm weather than mezcal and lime!
Crude Oil Stocks
The EIA reported a large draw of 5 million barrels this week. It seems they expected a draw but not such a large one.
The API reported an even larger draw of over 6 million barrels while forecasting a similar-sized draw to the EIA. I wonder what kind of effect this will have on the price of oil. Stay tuned…
From 2 months of builds to nearly over a month of draws (not counting that little blip a few weeks ago), what is going on?! While it has lots to do with refinery capacity, global pressures such as China’s economy and ongoing drama with Russia continue to have their effect on the global oil market.
Oil and Natural Gas Prices
The price of oil this week defied the usual spike in price that comes when the EIA reports a large draw from oil inventories. Oil has dropped for a consecutive week now despite the OPEC production cuts several weeks ago now which has spurred conversations that there may be another cut in the nearish future.
Atypical to what we usually see with natural gas prices, they have increased this week! Natural gas is now at $2.312 compared to ~$2.169 last week.
Fuels Market
We are coming up on a year since gas prices spiked to new highs around June of last year. Barring anything short of another Russian war it seems as though we are in for a much cheaper summer, at least in terms of the price of gas.
The price of a gallon of gas has dropped 6 cents on average across the country this week. Meanwhile, nothing has changed in terms of which state has the most and least expensive gas in the country, California and Mississippi. I’ll let you figure out which is which.
Diesel crisis round two here we come? Unlikely, although it is worrisome that diesel stocks have been so low for so long now.
Crude Oil Imports/Exports
Imports and exports of crude last week are up, meaning we are importing more oil than we are exporting. While many people like to boast that the US recently became a net oil exporter, this is simply not true. We did reach out closest yet, however, in late March when exports hit an all-time high of 4.5 million barrels per day.
Exports soared the past month, helping to contribute to a healthy import/export ratio for the month, but in the past week have slowed down significantly.
US Weekly Import/Export Data (April 7 – 14)
| Product | Imports (Mbbl/d) | Exports (Mbbl/d) | Net (Mbbl/d) |
|---|---|---|---|
| Crude Oil | 6,294 | 4,571 | 1,723 |
| Other Petroleum Products | 2,244 | 6,513 | -4,269 |
| Total Oil + Products | 8,538 | 11,084 | -2,546 |
We have updated information on where our oil is coming from and where it’s going! It’s not like it’s from last month or anything, there seems to be about a 3-month delay, regardless I hope you find it as interesting as I do.
US Monthly Import/Export Origin and Destination Data (Month of January 2023)
| Export Destination | Total (Mbbl) | Import Origin | Total (Mbbl) |
|---|---|---|---|
| Mexico | 36,091 | Canada | 120,118 |
| Canada | 25,323 | Mexico | 22,179 |
| China | 23,972 | Saudi Arabia | 13,235 |
| Japan | 19,242 | Iraq | 7,823 |
| Netherlands | 18,661 | Nigeria | 5,693 |
That does it for this week, get out and enjoy the weather for me. See you next week!
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