The EIA’s Weekly Petroleum Status Report was released yesterday. There was a draw of 1.9 million bbls on crude inventories. The EIA stated that for refined products, gasoline built by 1.3 million bbls and distillate drew by 2.1 million bbls.
According to OPIS, domestic distillate supplies put the brakes on a 17-week-long string of inventory builds last week, trimming 2.1 million bbl to 151.9 million bbl. But, inventory of distillate in PADD 1 (NE) is 43% higher than last year at this time. Due to so much carry in the market, traders and refiners are holding barrels awaiting higher prices in the winter. In one of the biggest declines of the year thus far, EIA statistics showed PADD 2 refinery utilization rates fell by more than 6 percentage points, down to 92.1 percent last week. This is due to all the recent refinery issues in the Midwest.
** In reference to yesterday’s news of the Colonial Pipeline shut down of lines three and four. Colonial's Line 3, with a capacity of 850,000 barrels per day, runs from Greensboro, North Carolina to Colonial Pipeline's hub in Linden, New Jersey, carrying both gasoline and distillates was restarted late yesterday. The re-start of Line 4 is scheduled for sometime early today.