Will EIA and API Crude Oil Inventory Data Diverge?



API crude oil inventories 

On July 12, 2016, the API (American Petroleum Institute) released its weekly crude oil inventories report. It reported that US crude oil inventories rose by 2.2 MMbbls (million barrels) between July 1 and July 8, 2016. US crude oil prices rose despite a surprise build reported by the API in US crude oil inventories during post-settlement trade on July 12, 2016. August WTI (West Texas Intermediate) crude oil futures contracts were trading at $46.15 per barrel in electronic trading at 7:15 AM EST on July 13, 2016.

A Reuters surveys projected that US crude oil inventories fell by three MMbbls for the same period. A drop in US crude oil inventories could push crude oil prices. For more on crude oil prices, read the previous part of the series.

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EIA’s crude oil inventories  

Tuesday API data will be followed by the EIA’s (U.S. Energy Information Administration) weekly petroleum status report on Wednesday. The EIA will release its weekly petroleum status report for the week ending July 8 on July 13, 2016, at 10:30 AM EST. It reported that nationwide crude oil inventories fell by 2.2 MMbbls to 526.6 MMbbls for the week ending July 1, 2016, which is 12.5% higher than the corresponding period in 2015.

Impact of US crude oil inventories 

Nationwide crude oil inventories hit an all-time high of 543.6 MMbbls for the week ending April 29, 2016. High crude oil inventories could limit the upside potential for US crude oil prices.

The uncertainty in crude oil prices affects oil and gas producers like Swift Energy (SFY), Warren Resources (WRES), PDC Energy (PDCE), and Sanchez Energy (SN). It also impacts ETFs and ETNs like the Guggenheim S&P 500 Equal Weight Energy ETF (RYE), the Direxion Daily Energy Bear 3x ETF (ERY), and the United States Brent Oil ETF (BNO).

Read the next part of this series to learn more about bullish drivers for crude oil prices this week.


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