WASHINGTON: The EIA (U.S. Energy Information Administration) reported that US refinery crude oil demand fell by 64,000 bpd (barrels per day) to 16,615,000 bpd from August 19–26, 2016. US refinery demand fell by 0.4% week-over-week, but rose by 1.8% year-over-year. US refineries operated at 92.8% of their operable capacity for the week ending August 26, 2016.
US crude oil imports rose by 275,000 bpd to 8,917,000 bpd from August 19–26, 2016. Imports rose by 3.2% week-over-week. US crude oil imports are at the highest levels since 2012. The rise in US crude oil imports also contributed to the rise in US crude oil inventories. For more on US crude oil inventories, read Part 3 of this series. The EIA reported that US crude oil production will fall by 700,000 bpd in 2016 and 420,000 bpd in 2017. Read EIA Revises US Crude Oil Production: A Bullish or Bearish Driver? for more details. The expectation of slowing US crude oil production could benefit US crude oil prices. For more on crude oil prices, please read Part 1 of this series.
High crude oil prices have a positive impact on oil producers’ earnings such as Matador Resources (MTDR) and Triangle Petroleum (TPLM). Uncertainty in crude oil prices impacts funds such as the VelocityShares 3x Long Crude Oil ETN (UWTI), the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), and the PowerShares DWA Energy Momentum ETF (PXI).
