29 Dec

All Eyes on the API Crude Oil Inventory Report

WRITTEN BY Gordon Kristopher

API crude oil inventory report 

The API (American Petroleum Institute) will release its weekly crude oil inventory report today. Last week, the API reported that the US crude oil inventory had fallen by 3.6 MMbbls (million barrels) for the week ending December 18, as compared to a rise of 2.3 MMbbls for the week ending December 11, 2015.

All Eyes on the API Crude Oil Inventory Report

EIA crude oil inventory 

The API data is followed by the EIA (U.S. Energy Information Administration) report. The EIA will publish its weekly crude oil inventory report tomorrow. The US commercial crude oil inventory fell by 5.9 MMbbls to 484.8 MMbbls for the week ending December 18, 2015. The fall in crude oil inventory could boost oil prices and vice versa.

Refined products inventory and impact 

For the week ending December 18, 2015, the EIA stated that gasoline inventory rose by 1.1 MMbbls to 220.5 MMbbls. In contrast, the US distillate inventory fell by 0.7 MMbbls to 151.3 MMbbls for the same period.

The record crude oil inventory and consensus of weak demand will continue to put pressure on the crude oil inventory. The record global crude oil inventory and wider contango market benefit oil tanker companies like Teekay Tankers (TNK), Frontline (FRO), DHT Holdings (DHT), and Euronav (EURN). However, the record global crude oil inventory and wider contango market hurt US oil producers like ConocoPhillips (COP) and Anadarko Petroleum Corporation (APC).

The roller-coaster ride of oil and gas prices affects ETFs like theProShares UltraShort Bloomberg Crude Oil EFT (SCO), the Vanguard Energy ETF (VDE), and the First Trust Energy AlphaDEX Fund (FXN).

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