Weekly Oil Inventories Report: Builds in All Three Reported Commodities and Prices are Mixed‏

The Energy Information Administration (EIA) has issued its weekly oil inventories report for the week ending Friday, November 25, 2011.  Comparisons of the earlier and less-followed API report, projections for this week’s EIA report, and today’s EIA report are shown below.   This report is “bearish” as most inventories are generally more robust than projected.

    Weekly Oil Inventories Reports for the Week Ending Friday November 25, 2011

Million Barrels

API Report

Projections

EIA Report

Crude Oil

3.4

0.9

3.9

Gasoline

-0.2

1.0

0.2

Distillate

1.3

-1.0

5.5

Upon the EIA’s report release, light crude oil was trading $100.92 per barrel, up $1.10 from yesterday’s close for January, largely from tensions in the Middle East.  Natural gas for January was trading at $3.55 per MMBtu, down $.07 from yesterday’s close on robust supply/demand ratios in most areas.

While early forecasts called for a net natural gas storage build of about 10 Bcf when the EIA releases its weekly data on December 1, revisions are taking that number lower as traders assess the likely impact of some chilly weather on storage building. While forecasts run widely from modest draws to a build of up to 20 Bcf, most outlooks now suggest a build of about 8 Bcf, which will compare bearishly to a 29-Bcf five-year-average withdrawal and a 21-Bcf pull reported in the same week last year.

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About JWM Energy Consultant
Professional Energy Consultant. I advise large energy-users on procurement strategies to reduce electricity and natural gas costs.

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