Actual oil production might be higher than reported in the EIA data – KBC

FXStreet (Barcelona) - The KBC Bank Research Team comments on the mismatch between weekly crude inventory estimates from the EIA and the actual figures from Petroleum Supply Monthly report, warning that the actual oil production might be higher than reported.

Key Quotes

“Crude inventories surprised significantly to the upside while gasoline stocks again fell quite sharply as the refinery utilization declined (it however remains relatively high in comparison with previous years). A bullish reaction to the release may be partially explained by a relatively sharp decline of domestic crude oil production.”

“Rather than “hard data”, this category however contains model estimates of the production. The actual oil production may thus eventually prove to be different than that indicated by weekly data.”

“In fact, over the past couple of months, the difference between first estimates contained in the Weekly petroleum status report and more accurate figures from Petroleum Supply Monthly report has been permanently negative. In other words, the actual oil production could in fact be higher than indicated by weekly production data.”