U.S. commercial crude oil stocks are expected to have increased 4.6 million barrels during the week ended March 20, a Platts survey of analysts showed.The U.S. Energy Information Administration (EIA) is scheduled to release its weekly data at 10:30 a.m. EDT (1430 GMT) Wednesday.The EIA five-year (2010-14) average shows inventories increasing 3.3 million barrels during the comparable reporting week.

Market players are keeping a close eye on storage levels at Cushing, Oklahoma -- delivery point for the New York Mercantile Exchange (NYMEX) futures contract -- where volumes in the hub's tanks have increased 15 weeks in row, reaching an all-time high of 54.4 million barrels the week ended March 13.

At 76.8% of working capacity, Cushing storage is nearing its physical limits, sparking questions about how much longer before tanks there are completely full.

Total U.S. crude oil stockpiles have increased for 10 consecutive weeks, reaching 458.5 million barrels. The accumulation is consistent with the seasonal pattern, as stocks grow during the winter and early spring. The inventory typically plateaus in May when refineries begin ramping up gasoline production ahead of the summer driving season.

Analysts expect the refinery utilization rate to inch 0.1 percentage point higher to 88.2% of operable capacity.

In refinery news, Tesoro began planned maintenance at its 120,000 barrels per day (b/d) refinery in Anacortes, Washington, during the week ended March 20. Further details were unavailable.

Phillips 66 shut a crude oil distillation unit (CDU) and a vacuum distillation column at its 134,000 b/d refinery in Wood River, Illinois.

The refinery, a joint venture between Phillips 66 and Cenovus, has three CDUs. Vacuum distillation is a secondary refining process that turns heavy oils into jet fuel, diesel and other refined products.

GASOLINE STOCKS EXPECTED TO DECREASE

Total U.S. gasoline stocks are expected to have decreased 2 million barrels the week ended March 20, according to the analysts surveyed. The EIA five-year average shows inventories falling 3.7 million barrels in the comparable reporting week.

Motiva restarted a gasoline-making fluid catalytic cracker (FCC) the week ended March 20 at its 600,000 b/d Port Arthur refinery. Motiva is a joint venture between Shell and Saudi Aramco. The refinery has catalytic cracking capacity of 88,000 b/d.

The week ended March 20 saw Philadelphia Energy Solutions restart an alkylation unit that had been offline for maintenance since March 9 at its Girard Point refinery. An alkylation unit creates high-octane hydrocarbons to add to gasoline.

U.S. distillate stocks are expected to have fallen 1.7 million barrels the week ended March 20, compared with the EIA five-year average of a 1.2 million-barrel decline for the same reporting week.

U.S. Gulf Coast (USGC) distillate exports to Europe rose 60,000 metric tonnes (mt) week over week to 200,000 mt the week ended March 20, according to Platts cFlow ship-tracking software.

Improved economics for moving U.S. distillate cargoes to Europe have boosted exports, providing an additional outlet for supplies.

More exports could help reduce the USGC's distillate inventory. The region's combined stockpile of low- and ultra-low-sulfur diesel has increased for three weeks in a row, reaching 40.1 million barrels the week ended March 20, a 12.4% surplus to the EIA five-year average.
Source: Platts