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How Will Gasoline and Distillate Inventories Affect Crude Oil Prices?

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API gasoline and distillate inventories   

The API (American Petroleum Institute) released its weekly crude oil (USO) (UWTI) (UCO) (BNO) inventory report on August 30, 2016. It reported that US gasoline inventories fell by 1.6 million barrels between August 19 and August 26. However, it estimated that US distillate inventories rose by 3 million barrels for the same period. To learn more about US crude oil inventories, read the previous part of this series.

Industry surveys estimate that US gasoline inventories could have fallen by 1.2 million barrels between August 19 and August 26. They also estimate that US distillate inventories fell by 200,000 barrels for the same period.

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EIA’s gasoline and distillate inventories   

The EIA (U.S. Energy Information Administration) will release its crude oil inventory report for the week ending August 26 on August 31, 2016, at 10:30 AM EST.

The EIA reported that US gasoline inventories were flat at 232.7 million barrels between August 12 and August 19. US distillate inventories had risen by 100,000 barrels to 153.3 million barrels for the same period. Gasoline and distillate inventories are above their five-year upper range. For more information, read Analyzing Global and US Gasoline Inventories and Analyzing European and US Distillate Inventories.

Impact of falling refined product inventories  

If gasoline inventories fall in line with market projections, it could support gasoline prices and crude oil prices. High crude oil prices have a positive impact on the earnings of oil and gas producers like Carrizo Oil & Gas (CRZO) and PDC Energy (PDCE).

Uncertainty in crude oil prices impacts ETFs and ETNs such as the iShares U.S. Oil Equipment & Services ETF (IEZ), the ProShares Ultra Bloomberg Crude Oil ETF (UCO), the DB Crude Oil Double Short ETN (DTO), the Direxion Daily Energy Bear 3x (ERY), the PowerShares DWA Energy Momentum (PXI), and the United States 12 Month Oil ETF (USL).

In the next two parts of this series, we’ll look at some key bearish drivers for crude oil prices.

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