API crude oil inventories
On August 9, 2016, the API (American Petroleum Institute) will release its weekly crude oil inventories report. Reuters surveys suggest that US crude oil inventories fell by 1 MMbbls (million barrels) between July 29 and August 5, 2016. The decrease in crude oil inventories will benefit US crude oil prices.
Data intelligence company Genscape reported that Cushing crude oil inventories rose by 307,000 barrels between July 29 and August 5, 2016. For more on Cushing crude oil inventories, read Cushing Crude Oil Inventories May Limit Downside for Crude Oil Prices.
Last week, the API reported that US crude oil inventories fell by 1.3 MMbbls from July 22–29, 2016. It added that Cushing crude oil inventories fell by 1.3 MMbbls for the same period.
EIA’s crude oil inventories
Tuesday’s API data are followed by the EIA’s (U.S. Energy Information Administration) weekly petroleum status report on Wednesday. The EIA will release its weekly US crude oil inventory report for the week ending August 5 on August 10 at 10:30 AM EST.
On August 3, 2016, the EIA reported that US crude oil inventories rose by 1.4 MMbbls to 521.5 MMbbls from July 22–29, 2016. For a regional breakdown of crude oil inventories, read US Crude Oil Inventories Rose for the Second Time in 11 Weeks.
Impact of US crude oil inventories
US crude oil inventories hit an all-time high of 543.6 MMbbls in the week ending April 29, 2016. For the week ending July 29, 2016, inventories were 12.9% higher than the same period in 2015. High US crude oil inventories will pressure crude oil prices.
Lower crude oil prices have a negative impact on oil and gas producers’ earnings like Swift Energy (SFY) and Sanchez Energy (SN). Volatility in oil prices impacts ETFs like the United States 12-Month Oil ETF (USL), the Direxion Daily Energy Bear 3x (ERY), and the United States Brent Oil Fund (BNO).
In the next part, we’ll discuss the monthly US crude oil production and how it impacts crude oil prices.