The API (American Petroleum Institute) released its weekly inventory report on December 20, 2016. It estimates that US gasoline inventories fell by 1.96 MMbbls (million barrels) from December 9–16, 2016. US distillate inventories also fell by 1.55 MMbbls during the same period.
A market survey estimated that US gasoline inventories would rise by 1.4 MMbbls from December 9–16, 2016. Surveys also estimated that US distillate inventories would fall by 1.2 MMbbls during the same period.
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On December 21, 2016, the EIA (U.S. Energy Information Administration) will release its crude oil inventory report for the week ending December 16, 2016.
For the week ending December 9, 2016, the EIA reported that US gasoline inventories rose by 0.5 MMbbls to 230 MMbbls. US distillate inventories fell by 0.8 MMbbls to 155.9 MMbbls during the same period. US gasoline and distillate inventories were above their five-year upper range.
A larger-than-expected rise in gasoline inventories could pressure gasoline and crude oil prices. However, a fall in inventories could support gasoline and crude oil prices.
Moves in crude oil prices could impact oil and gas producers’ earnings such as Bonanza Creek Energy (BCEI), ExxonMobil (XOM), Comstock Resources (CRK), Northern Oil & Gas (NOG), Marathon Oil (MRO), Continental Resources (CLR), and SM Energy (SM).
The ups and downs in crude oil (USO) (XOP) (RYE) (BNO) prices could also impact ETFs and ETNs such as the ProShares UltraShort Bloomberg Crude Oil ETF (SCO), the Vanguard Energy ETF (VDE), the SPDR S&P Oil & Gas Equipment & Services ETF (XES), the PowerShares DWA Energy Momentum ETF (PXI), and the United States 12 Month Oil ETF (USL).
In the next part of this series, we’ll take a look at gasoline demand and its impact on gasoline and crude oil prices.