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Will API Crude Oil Inventory Data Pressure Crude Oil Prices?

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API report  

The API (American Petroleum Institute) is scheduled to release its weekly crude oil inventory report on September 15, 2015. Last week, the crude oil stockpile rose by 2.1 MMbbls (million barrels) for the week ending September 4, 2015. Likewise, the distillate stockpile rose by 0.790 MMbbls over the same period. The API added that the gasoline inventory rose by 0.706 MMbbls for the week ending September 4, 2015. The crude oil and refined products stockpile rose due to seasonal refinery maintenance.

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API and EIA report 

The API data release is followed by the EIA’s (U.S. Energy Information Administration) weekly petroleum status report. The EIA will release its next report on September 15, 2015. The data showed that the US commercial crude oil inventory rose by 2.6 MMbbls to 458 MMbbls for the week ending September 4, 2015.

Market surveys

Bloomberg surveys estimate that crude oil stocks could rise by 1.75 MMbbls for the week ending September 11, 2015. Distillates stocks are also expected to rise by 0.25 MMbbls for the same period. In contrast, the gasoline stockpile is estimated to fall by 0.5 MMbbls for the week ending September 11, 2015. The consensus of rising crude oil stocks will add pressure to crude oil prices.

The falling crude oil prices impact oil and gas producers like ConocoPhillips (COP), Apache (APA), and Hess (HES). Together, they account for 6.76% of the Energy Select Sector SPDR ETF (XLE). These stocks’ crude oil production mix is more than 49% of their total production. Oil and gas ETFs like XLE and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) are also impacted by falling crude oil prices.

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