API crude oil inventory data
The API (American Petroleum Institute) is scheduled to release its weekly crude oil inventory data today. Last week, the API reported that crude oil inventories rose by 2.6 MMbbls (million barrels) for the week ending November 20. In contrast, crude oil inventories fell by 0.482 MMbbls for the week ending November 13, 2015. Traders closely watch API crude oil inventory data, which serve as a guide to the weekly petroleum status report.
EIA crude oil inventory data and estimates
The EIA (U.S. Energy Information Administration) is scheduled to release its weekly petroleum status report on December 2, 2015. Last week, the EIA reported that crude oil inventories rose by 1 MMbbls to 488.2 MMbbls for the week ending November 20, 2015. Preliminary surveys from Reuters suggest that crude oil inventories might have fallen by 1.1 MMbbls for the week ending November 27 due to the rise in refinery demand. A fall in crude oil inventories could benefit crude oil prices.
Meanwhile, the EIA added that gasoline inventories rose by 2.5 MMbbls for the week ending November 20, 2015. Market surveys projected that gasoline stocks would rise by 0.975 MMbbls for the week ending November 27. US distillate inventories rose by 1 MMbbls for the week ending November 20. Industry surveys projected that distillates inventories would fall by 0.125 MMbbls for the week ending November 27.
Crude oil inventories are 27.5% more than last year’s level of 383 MMbbls. They are also at an 80-year high for this time of year. Record US inventory might weigh on crude oil prices. Long-term lower crude oil prices affect US oil and gas producers like Murphy Oil (MUR), Marathon Oil (MRO), Noble Energy (NBL), and Apache (APC). The rises and falls in the energy market affect ETFs such as the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), the Fidelity MSCI Energy Index (FENY), the ProShares UltraShort Bloomberg Crude Oil ETF (SCO), and the Select Sector SPDR Fund (XLE).
In the next part of this series, we’ll see how OPEC production influences crude oil prices.