uploads///api gasoline

Will Gasoline and Distillate Inventories Support Crude Oil Prices?

By

Nov. 20 2020, Updated 2:03 p.m. ET

API gasoline and distillate inventories 

On May 2, the API (American Petroleum Institute) released its weekly crude oil inventory report. The API estimated that US gasoline inventories fell by 1.2 MMbbls (million barrels) between April 22 and April 29. Similarly, US distillate inventories also fell by 2.6 MMbbls for the same period. Read the previous part of this series to learn more about nationwide crude oil inventories. Market surveys project that gasoline stocks could fall by 0.14 MMbbls between April 22 and April 29. Likewise, distillate stocks are expected to fall by 0.083 MMbbls for the same period.

Article continues below advertisement

EIA’s gasoline and distillate inventories  

The EIA (U.S. Energy Information Administration) is scheduled to release its weekly petroleum status report on Wednesday, May 4, at 10.30 AM EST. The government agency reported that US gasoline stocks rose by 1.6 MMbbls (million barrels) to 241.3 MMbbls between April 15 and April 22. US distillate inventories fell by 1.7 MMbbls (million barrels) to 155.2 MMbbls for the same period. Gasoline and distillate inventories are higher than their five-year upper range.

Impact of falling refined products inventories 

The estimates of falling gasoline and distillate inventories could positively affect gasoline prices. Consequently, it will benefit crude oil prices. High crude oil prices benefit oil and gas producers such as Denbury Resources (DNR), Swift Energy (SFY), Stone Energy (SGY), and Triangle Petroleum (TPLM)

ETFs and ETNs such as the ProShares Ultra Bloomberg Crude Oil ETF (UCO), the Direxion Daily Energy Bear 3X ETF (ERY), the PowerShares DWA Energy Momentum ETF (PXI), and the United States 12 Month Oil ETF (USL) are affected by the ups and downs of crude oil prices.

For ongoing analysis, keep checking in with Market Realist’s Upstream Oil and Gas page.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.