Record API crude oil inventory data
The API (American Petroleum Institute) will release its weekly crude oil, gasoline, and distillates stocks report on Tuesday, October 20, 2015. Last week, crude oil stocks rose by 9.3 MMbbls (million barrels) for the week ending October 9, 2015—the highest since April 2015. In contrast, crude oil stocks fell by 1.2 MMbbls for the week ending October 2, 2015. Crude oil stocks rose due to rising crude oil imports and weak refinery demand.
EIA crude oil inventory data
Traders watch the API data closely because it’s followed by the EIA’s (U.S. Energy Information Administration) report. The EIA’s crude oil inventory report is scheduled to release on Wednesday, October 21, 2015. Last week, the EIA reported that the crude oil inventory rose by 7.6 MMbbls (million barrels) to 468.6 MMbbls for the week ending October 9, 2015—the highest rise in crude oil stocks since April 2015. The US crude oil inventory rose for the third consecutive week as of October 9, 2015. Gasoline and distillate stocks fell by 2.6 MMbbls and 1.5 MMbbls for the same period.
Currently, the crude oil stocks are 26% more than the level of 370 MMbbls in 2014. They’re also near an 80-period high during this time of year. Market surveys suggest that crude oil stocks are expected to rise by 3.7 MMbbls for the week ending October 16, 2015. The consensus of rising crude oil stocks will continue to put downward pressure on crude oil prices. In contrast, distillates and gasoline stocks are expected to fall by 1.31 MMbbls and 0.975 MMbbls for the same period.
The catastrophic fall in the crude oil prices will weigh on US upstream players like Marathon Oil (MRO), Noble Energy (NBL), Murphy Oil (MUR), and Newfield Exploration (NFX). These stocks’ crude oil output mix is greater than 41% of their total portfolio. ETFs like the iShares US Oil & Gas Exploration & Production ETF (IEO) and the ProShares UltraShort Bloomberg Crude Oil ETF (SCO) are impacted by the roller coaster ride of crude oil prices.