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US crude oil and propane/propylene inventories were unchanged last week, but inventories of gasoline and distillate fuels pushed total commercial petroleum inventories up more than 5 million barrels. Gasoline demand has perked up a little since prices began to fall, but remains more than 2% below year ago levels and jet fuel demand is down more than 15% compared to the same period in 2007. Refineries are operating above 85% of capacity with inputs of 14.6 million barrels per day, down slightly from last week. Given lower demand for refined products, this level is more a reflection of demand than of any lingering damage from Hurricane's Ike and Gustav.

US Petroleum Supplies and Refining At a Glance

• Total Petroleum Inventories: Up 5.1 million barrels
• Crude Oil Inventories: Unchanged
• Gasoline Inventories: Up 1.1 million barrels
• Distillate Fuels Inventories: Up 1.2 million barrels
• Propane/propylene inventories: Unchanged
• Refinery Crude Inputs: 14.6 million barrels/day
• Change: Down 234,000 barrels/day
• Refinery Activity: 85.3%

US Petroleum Demand At a Glance
Compared to Same 4-Week Period Last Year

• Total Products Supplied: Down 6.7%
• Gasoline: Down 2.3%
• Distillate Fuel: Down 4.8%
• Jet Fuel: Down 15.9%

The Energy Information Administration is running new short term forecasts considering the substantial drop in demand and worldwide economic activity. In notes on the analysis, This Week in Petroleum noted something that drivers, business owners and anyone who consumes energy should take as a warning as the economy improves next year:

The credit crunch and the recent decline in prices for oil and natural gas are likely to affect exploration and production investment in both OPEC and non-OPEC countries...The greater the delays in investment in existing and new oil fields, the lower production will be once the world economy and oil demand recover, increasing the risk that we will return to a tight supply situation.

Oil report and This Week in Petroleum

Full current report with data tables [PDF]