API oil stocks’ estimates
On September 9, 2015, the API (American Petroleum Institute) is scheduled to release its weekly crude oil, gasoline, and distillate stock report. The API report will be released on Wednesday due to the Labor Day holiday on Monday. Last week, the API reported that the crude oil stockpile rose by 7.6 MMbbls (million barrels) for the week ending August 28, 2015. Similarly, distillate stocks also rose by 0.251 MMbbls over the same period. In contrast, the gasoline inventory fell by 1 MMbbls for the week ending August 28, 2015.
API data is a precursor to the EIA data
Crude oil traders watch the API data closely. The API data gives cues about the EIA’s (U.S. Energy Information Administration) stockpile report. The EIA will release the weekly US commercial crude oil inventory report on September 10, 2015.
Last week, the EIA reported that the US commercial crude oil stockpile rose by 4.7 MMbbls (million barrels) to 455.4 MMbbls for the week ending August 28, 2015. Likewise, the distillate stockpile rose by 0.1 MMbbls for the same period. In contrast, gasoline inventories fell by 0.3 MMbbls for the week ending August 28, 2015.
The current crude oil stock is 26% more than the levels of 359.57 MMbbls in 2014. It’s also near the period-high levels for stocks during this time of the year. The rising crude oil inventory and record inventory will continue to put downward pressure on crude oil prices.
Oil and gas producers like ConocoPhillips (COP), Chevron (CVX), and Marathon Oil (MRO) are negatively impacted by falling crude oil prices. These companies have a crude oil production mix that’s greater than 49% of their total production. Combined, they account for 18.30% of the Energy Select Sector SPDR ETF (XLE).
Falling crude oil prices impact energy ETFs like XLE and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).