The Energy Information Administration was so excited about this week's data that it released the report 7 minutes early. And an exciting report it was, showing that the US refining system is finally back to pre-Katrina and Rita status.
US crude stocks tumbled 6.5 million barrels last week, according to the EIA, as refineries came back up from maintenance, and gasoline inventories rose 600,000 barrels. The RBOB crack spread is coming under further pressure as we speak, as concerns over tight gasoline supplies fade.
Refinery utilization jumped 1.9 percentage points to 93.6%, the highest in more than a year, and the amount of crude input to refineries hit the highest level since the week ending August 26, 2005 -- not coincidentally, the week before Katrina wrecked havoc on Louisiana refineries.
Finished gasoline production hit a fresh record high of 9.429 million b/d, as a recent surge of blendstock imports from Europe was turned into finished product. Last week saw a similarly high portion of blendstocks amid total gasoline imports -- 875,000 b/d out of 1.225 million b/d -- so don't be surprised to see another strong production number next week.
The WTI crude curve should get further support from another 500,000 barrel drop in Cushing, Oklahoma crude stocks. At 20.7 million barrels, stocks at the NYMEX delivery point are at their lowest since December 2005.
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