The crude oil inventory build for the week ended January 16, 2015, was far above the predictions of any industry analyst. In fact, the build is the largest since May 31, 1996, when the Energy Information Administration reported a build of 11,937 MBO.
The current stockpile of 397,853 MBO is the highest in eight months. However, it is the highest level ever in the month of January dating back to 1982, based on data compiled from Bloomberg. CIBC called the additions a “monster build,” adding “Refinery turnaround season is ramping up again, but runs (-984 MBOPD) were cut by more than the maintenance schedule would imply, which suggests voluntary run cuts due to poor margins.”
As evidenced by EnerCom’s Crude Oil Cutting inventory report and its Chart of the Week, current stockpiles are far above the ranges of 2014 and the overall average of the last five years. To be exact, stockpiles are 46,629 MBO (11.7%) above 2014 and 53,806 MBO (13.5%) above the trailing five year range.
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