The Week In Numbers for the Week Ending 9-30-2016

          Each week, we strive to provide you a bare bones summary of what happened to the price of WTI, Natural Gas, and Brent Crude. In addition, we summarize the major reports from API and EIA on Inventory Data. And we also throw in the rig count for good measure.

WTI Open on September 19, 2016	$43.18
WTI as of 12:00 PM on September 30, 2016	$48.08
Brent Open on September 19, 2016	$46.01
Brent as on September 30, 2016	$50.05
Natural Gas Open on September 19, 2016	$2.956
NG as of 12:00 PM on September 30, 2016	$2.898

 

          On September 20, 2016, API reported its weekly inventory data for the prior week. According to API, U.S. Crude inventories decreased by 7.5 Million barrels after a modest increase 1.44 million barrels the week before. This was substantially better than the market expectation of a build of around 2.0 million barrels. Gasoline inventories decreased by 2.5 million barrels (compared to a decrease of 2.4 million barrels the week before). Distillates increased by 1.4 million barrels after a 5.3 million barrel increase last weeks. API reported data again on September 27, 2016 for the prior week. Unfortunately, there was only a small draw of around 750,000 barrels. Gasoline stock piles fared better with a draw of 3.7 million barrels. These continuing draws are helping to alleviate market concerns over too much gasoline stock. Breaking this month’s trend, there was a small draw of distillates around 300,000 barrels.

 On September 28, 2016, the Energy Information Administration released weekly data for the prior week.   The EIA weekly report, included the following important notes:

- U.S. crude oil refinery inputs averaged 16.3 million barrels per day during the week ending September 23, 2016, about 253,000 barrels per day less than the previous week’s average. Refineries are operating at 90.1% capacity.

- U.S. Crude imports averaged about 7.8 million barrels per day last week, down by 474,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged over 7.8 million barrels per day, 6.5% above the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 778,000 barrels per day. Distillate fuel imports averaged 144,000 barrels per day last week.

- U.S. commercial crude inventories decreased by 1.9 million barrels At 502.7 million barrels, U.S. crude oil inventories remain at historically high levels for this time of year. Total motor gasoline inventories increased by 0.6 million barrels last week, and are well above the upper limit of the average range. In the previous EIA weekly report (released September 21, 2016 for the week ending September 16, 2016) U.S. commercial crude inventories decreased by 6.2 million barrels, and gasoline decreased by 3.2 million barrels.

            On September 23, 2016, the Energy Information Administration released weekly data for the prior week for natural gas storage. Working gas in storage was 3,600 Bcf as of Friday, September 23, 2016, according to EIA estimates. This represents a net increase of 49 Bcf from the previous week. Stocks were 90 Bcf higher than last year at this time and 220 Bcf above the five-year average of 3,380 Bcf. At 3,600 Bcf, total working gas is above the five-year historical range.This is well below the typical build for this time of the year, indicating that natural gas markets may be moving into balance.

            On Friday, September 23, 2016, Baker Hughes released the weekly rig count data. The U.S. oil rig count rose by 2 to 418. The gas rig count rose by 3 to 92, and miscellaneous rigs stayed at 1, taking the total up to 511.

            On Friday, September 30, 2016, Baker Hughes released the weekly rig count. The U.S. oil rig count rose by 7 to 425. The gas rig count rose by 4 to 96, and miscellaneous rigs stayed at 1, taking the total up to 522. The oil-rig count has not fallen during the last 14 weeks, the longest streak since before oil prices started slumping in 2014. The tally is now at the highest level since the week of February 12.

 

By: Ty Chapman

Five Star Metals, Inc.
Raising the Bar for Customer Service and Quality

Twitter: @FSM_TY

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