API and EIA’s Crude Oil Inventories: Good News for Oil Bulls?
Crude oil futures
November WTI (West Texas Intermediate) crude oil (UWT) (DWT) (DBO) futures contracts fell 0.6% to $50.09 per barrel in electronic trade at 2:10 AM on October 4, 2017. Prices fell due to the large build in US gasoline inventories reported by the API (American Petroleum Institute) the previous day.
The E-Mini S&P 500 (SPY) December futures contracts fell 0.03% to 2,532 in electronic trading at 2:10 AM on October 4, 2017.
Interested in UWT? Don't miss the next report.
Receive e-mail alerts for new research on UWT
API’s crude oil inventories
On October 3, 2017, the API reported that US crude oil inventories fell by 4.07 MMbbls (million barrels) on September 22–29, 2017. The market expected that US crude oil inventories would have fallen by 0.76 MMbbls during the same period. US crude oil (USO) (UCO) prices fell in post-settlement trade on October 3, 2017, despite the larger-than-expected draw.
EIA’s US crude oil inventories
In the previous week’s report, US crude oil inventories fell 1.8 MMbbls to 470.9 MMbbls on September 15–22, 2017. US crude oil inventories have fallen by 1.1 MMbbls or 0.2% year-over-year.
On October 4, 2017, the EIA (U.S. Energy Information Administration) will release its weekly crude oil inventory report at 10:30 AM. If the EIA reports a larger-than-expected draw in US crude oil inventories, it would support crude oil prices.
In the next part of this series, we’ll discuss the API’s gasoline and distillate inventories data.