Weekly DOE Crude & Products Inventory Analysis - 01.20.2011

·         Crude build counters expectations – Crude oil inventories increased 2.6 mmbbls last week, compared with market expectations for a 0.5 mmbbls draw (per Bloomberg). Crude oil inventories are now sitting at 335.7 mmbbls, which is 1.4% above last year and 5.7% above the five-year average.                                             

·         Distillate inventories in line  – Inventories of distillates increased 1.0 mmbbls last week, in line with market expectations (per Bloomberg). Distillate inventories are now sitting at 165.8 mmbbls, which is 3.4% above last year and 16.6% above the five-year average.                     

·         Gasoline inventories exceed expectations – Gasoline inventories increased 4.5 mmbbls last week, compared with market expectations for a 2.5 mmbbls build (per Bloomberg). Inventories of gasoline are now sitting at 227.7 mmbbls, which is 1.9% above last year and 5.4% above the five-year average.                    

·         Refinery utilization falls – Refinery utilization fell to 83.0% (was 86.4% the week prior), exceeding last year’s level of 81.3%, but below the five-year average of 85.6%.