May 26, 2016 [OPIS] - U.S. West Coast total gasoline inventories built back above 30 million bbl last week, reaching a substantial surplus to the region's seasonal five-year average despite a slight slowdown in gasoline blending, according to supply statistics released Wednesday by the U.S. Energy Information Administration (EIA).
Total motor gasoline stockpiles across the PADD5 region increased 1.1 million bbl to 30.1 million bbl the week ending May 20, which was about 2.7 million bbl higher than the five-year average for that week, according to EIA.
The big gasoline build was likely tied to improved gasoline production in Southern California this month after ExxonMobil successfully restarted the fluid catalytic cracker unit and alkylation unit at its Torrance, Calif., refinery on May 9 and May 17, respectively.
However, EIA statistics showed a decline in gasoline blending and production across the U.S. West Coast last week. Gasoline output was down just 8,000 b/d to around 1.62 million b/d, but that rate still bested last year by 20,000 b/d.
Meanwhile, gasoline imports continued to flow into the PADD5 region, even though at least one ship carrying alkylate, a high-octane gasoline blending component, was recently diverted. The West Coast imported about 161,000 bbl of gasoline last week, up from 70,000 bbl the week prior, according to EIA.
West Coast refiners also reduced distillates runs last week, seeing both diesel fuel and jet fuel production fall below last year’s schedule.
PADD5 jet fuel output fell a sizable 44,000 b/d to a two-year low of 362,000 b/d last week, as weaker spot market prices and a steady flow of cargoes caused refiners to switch gears. The West Coast imported about 609,000 bbl of jet fuel last week, down from the previous week’s hefty volume of about 1.25 million bbl.
The heavy jet fuel haul from the water helped regional jet fuel inventories build 400,000 bbl to a six-week high of 9.7 million bbl last week, which was a sharp 2.1-million-bbl surplus to last year, according to EIA statistics.
West Coast diesel fuel output decreased 24,000 b/d to 508,000 b/d, which was 65,000 b/d lower than last year’s rates. Meanwhile, total diesel fuel inventories drew 400,000 bbl to 12.7 million bbl, which was 300,000 bbl lower than last year’s stockpiles during the corresponding week.