HardAssetsInvestor

Written by Sumit Roy  |

January 24, 2013

Oil Has More Room To Run As China’s Crude Imports Grow 6.8%, But Bloated Inventories To Cap Prices

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We take a look at the latest developments in the oil market, including charts of all the major inventory categories.

The Department of Energy reported this morning that in the week ending Jan. 18, U.S. crude oil inventories increased by 2.8 million barrels, gasoline inventories decreased by 1.7 million barrels, distillate inventories increased by 0.5 million barrels and total petroleum inventories decreased by 2.6 million barrels.

Oil prices rose after the release of the latest inventory figures. Brent and WTI are at their highest levels since October and September, respectively.

Inventories at Cushing, Okla., finally declined, but only modestly. More pipeline capacity out of the region may have to come online before the glut can be completely drained.

Meanwhile, U.S. oil production dipped below 7 mmbbl/d, after hitting 20-year highs the week before. Nevertheless, output is still running a whopping 1.2 mmbbl/d, or 22 percent above the year-ago level.