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Game Changer: API Crude Oil Inventory Data and Cushing Stocks

Gordon Kristopher - Author
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Nov. 20 2020, Updated 2:06 p.m. ET

API crude oil inventory data

The API (American Petroleum Institute) releases its weekly crude oil inventory report every Tuesday. However, February 15, 2016, was Presidents Day. So, the API released its weekly crude oil inventory report on February 17, 2016. Last week, the API reported that the US crude oil inventory rose by 2.4 MMbbls (million barrels) for the week ending February 5, 2016. The API crude oil inventory rose for the fourth consecutive week. The consensus of the rising crude oil inventory will continue to put pressure on crude oil prices.

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EIA’s crude oil inventory 

The API crude oil inventory is followed by the EIA’s (U.S. Energy Information Administration) crude oil inventory report. The EIA is scheduled to release its weekly petroleum status report on February 18, 2016. Last week, nationwide crude oil inventories fell by 0.8 MMbbls (million barrels) to 502 MMbbls for the week ending February 5, 2016. Reuters’ surveys suggest that US crude oil stocks might gain by 3.9 MMbbls for the week ending February 12, 2016. To learn more about the US crude oil inventory, read EIA’s Crude Oil Inventory Report Surprised Bearish Traders. To learn more about gasoline stocks, read Larger Rise in Gasoline Inventories Impacted Crude Oil Prices. Read Rising Distillate Inventory Pressures Oil Prices for an update on distillates.

Cushing crude oil inventory 

The Cushing crude oil inventory rose by 705,000 barrels from February 6, 2016, to February 12, 2016, according to data from Genscape. The consensus of rising Cushing crude oil inventory will put pressure on crude oil prices. Read Why Are Cushing Crude Oil Stocks Crushing Crude Oil Prices? to learn more about Cushing’s crude oil inventory. Rising crude oil stocks also increase crude oil’s storage cost. To learn more, read Crude Oil Storage Costs Rose 9 Times, US Crude Tests New Limits. In the next part of this series, we’ll discuss how Iran and Iraq would add value to the historic deal covered in the first two parts of the series. 

Impact on stocks and ETFs 

The rising crude oil stocks and wider contango market benefit oil tankers like Teekay Tankers (TNK), Frontline (FRO), and Tsakos Energy Navigation (TNP). The rise in inventories in land and sea also benefits oil and gas storage and transportation companies such as Williams Companies (WMB), Spectra Energy (SE), and Kinder Morgan (KMI).

ETFs and ETNs such as the Vanguard Energy ETF (VDE), the VelocityShares 3x Long Crude Oil ETN (UWTI), the Direxion Daily Energy Bull 3x (ERX), and the ProShares UltraShort Bloomberg Crude Oil ETF (SCO) are also influenced by the rise and fall in crude oil prices.

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