US petroleum total product stocks retreated in the week ending February 18 to the lowest levels since April, 2010, according to recent Platts "US Inventory Update". Inventory reductions were attributed to lower refinery output and imports. Total US product stocks were at 710.873 million barrels (m/b); total product inventory was 24.446 m/b above both the five year average and 1.461 m/b above year ago levels. Refinery throughput declined in every region except the US West Coast region. US refinery runs fell below 80 percent to 79.6 percent for the last week despite attractive crack spreads (i.e. the profit margin refiners make when turning a barrel of crude into gasoline or distillate products.). This reduced refinery production along with reduced imports of refined product lead to product inventory declines.

Reviewing specific product categories, Platts reports that crude stocks increased despite lower imports mainly due to reduced refining. Crude stocks are 15.793 m/b above the five year average and 9.202 m/b above year ago levels. US gasoline and middle distillate stocks declined 2.798 m/b for the week ending February 18, 2011. Platts reports that overall oil demand decreased in its most recent report. The drop in oil demand, as seen by the reduced refinery throughput, was attributed to reduced demand for middle distillate product with heating oil falling off as temperatures moderate. Gasoline demand climbed 291,000 barrels a day as weather conditions improved allowing for more travelling.