US crude oil stocks climb as slack refinery runs offset stronger exports

US crude oil inventories moved higher in the week ended Nov. 15 as lower refinery runs offset stronger exports.

US commercial crude stocks climbed 550,000 barrels to 430.29 million barrels over the week to Nov. 15, Energy Information Administration data showed. Inventories now stand at 4.6% behind the five-year average for this time of year, up from 4.4% the week prior.

The build came in well below recent market expectations. American Petroleum Institute data released late Nov. 19 showed crude stocks increasing by 4.75 million barrels over the period.

Inventories at the NYMEX delivery hub of Cushing, Oklahoma, dipped 140,000 barrels to 25.05 million barrels, a five-week low.

The build comes amid a counter-seasonal slide in refinery runs. Total refinery utilization dipped 1.2 percentage points to 90.2% of capacity, and overall refinery net crude inputs eased 280,000 b/d to 16.23 million b/d.

Despite the pullback, refinery runs still remain well above normal for this time of year. Utilization held at 3.1% above the five-year average during the week, and net inputs were 3.8% stronger than normal over the period.

Refinery outages are expected to continue to decline throughout November as operators wrap up major turnaround work.

BP was expected to begin the restart process again on Nov. 20 at its Whiting, Indiana, refinery following planned maintenance, according to an industry source familiar with the refinery's operations.

The refinery, the largest in the Midwest and a key supplier to the Chicago market, had been expected to be back up by Nov. 15. Work was performed on a 255,000 b/d crude distillation unit and a coker. The units went down on Sept. 23.

Other refineries expected to restart in late November include Cenovus in Toledo, Ohio, along with Marathon in Detroit and Delek in Krotz Springs, Louisiana.

Crude exports climbed 940,000 b/d week on week to 4.14 million b/d as of Nov. 15, EIA data showed, putting outflows at the highest level since mid-September.

Transatlantic export economics have strengthened in recent weeks. The arbitrage incentive for moving WTI MEH into Northwest Europe has averaged 97 cents/b to date in November versus North Sea Forties, up from minus 10 cents/b during October, S&P Global Commodity Insights data showed.

US gasoline stocks climbed 2.05 million barrels week on week to 208.93 million barrels as of Nov. 15. This seasonal build held inventories steady at 4.4% below the five-year average but pulled them off two-year lows seen the week prior.

Gasoline builds were seen across all regions outside the US West Coast, where stocks dipped 80,000 barrels. The build was concentrated in the Midwest, which saw stocks climb 1.03 million barrels.

Nationwide distillate stocks dipped 110,000 barrels week on week to 114.3 million barrels as of Nov. 15, EIA data showed.