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EIA’s Crude Oil Inventories Could Break an All-Time High

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Nov. 20 2020, Updated 4:04 p.m. ET

API’s crude oil inventories  

On February 14, 2017, the API (American Petroleum Institute) released its weekly crude oil inventory report. It reported that US crude oil inventories rose by 9.94 MMbbls (million barrels) from February 3–10, 2017. As a result, crude oil (FENY) (BNO) (IEZ) prices fell in post-settlement trade on February 14, 2017.

Lower crude oil prices have a negative impact on oil and gas producers’ earnings like Apache (APA), Contango Oil & Gas (MCF), Stone Energy (SGY), and Triangle Petroleum (TPLM).

The API added that Cushing crude oil inventories fell by 1.3 MMbbls from February 3–10, 2017. For more on crude oil prices and its drivers, read Part 1 of this series. 

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EIA’s crude oil inventories  

The API’s report will be followed by the EIA’s (U.S. Energy Information Administration) weekly crude oil inventory report on February 15, 2017. The data will be for the week ending February 10, 2017.

For the week ending February 3, 2017, the EIA reported that US crude oil inventories rose by 13.8 MMbbls to 508.6 MMbbls. Read Are US Crude Oil Inventories Approaching an All-Time High? for more on crude oil inventories.

A market survey estimates that US crude oil inventories could have risen by ~3.5 MMbbls from February 3–10, 2017. If the EIA reports a larger-than-expected rise in inventories, it could pressure crude oil prices. On the other hand, an unexpected fall in US crude oil inventories could support crude oil prices.

Impact of US crude oil inventories  

US crude oil inventories hit an all-time high of 512 MMbbls in the week ending April 29, 2016. US crude oil inventories have risen by ~30 MMbbls or 6.2% in the last six weeks. Crude oil prices fell 4% during this period. If the momentum continues, crude oil inventories could test an all-time high. A rise in crude oil inventories could pressure crude oil (IEZ) (FENY) (RYE) prices.

In the next part of this series, we’ll see how gasoline inventories impact crude oil prices.

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