API’s crude oil inventories  

On June 27, 2017, the API (American Petroleum Institute) released its weekly crude oil inventory report. It estimated that US crude oil inventories rose by 0.851 MMbbls (million barrels) on June 16–23, 2017. The API estimated that US crude oil inventories have risen by ~15 MMbbls so far in 2017.

The surprise build in US crude oil inventories pressured (XLE) (SCO) (BNO) US crude oil prices in post-settlement trade on June 27, 2017.

Likewise, gasoline and distillate inventories rose by 1.31 MMbbls and 0.67 MMbbls, respectively, on June 16–23, 2017. Higher inventories also pressured crude oil prices.

Will API and US Crude Oil Inventories Drive Prices Higher?

Crude oil prices are trading near a ten-month low. Lower crude oil prices have a negative impact on oil producers’ profitability like Northern Oil & Gas (NOG), Matador Resources (MTDR), SM Energy (SM), and Goodrich Petroleum (GDP).

EIA’s crude oil inventories

The EIA (U.S. Energy Information Administration) will release its petroleum status report at 10:30 AM EST on June 28, 2017.

Market surveys estimate that US crude oil inventories would have fallen by 2.3 MMbbls and 3.25 MMbbls on June 16–23, 2017. If the EIA reports a surprise build like the API, we could see collateral damage in crude oil prices.

US gasoline and distillate inventories 

US crude oil inventories are above the five-year average. Likewise, gasoline and distillate inventories are above the five-year average. Global crude oil inventories are also above the five-year average. The rise in US crude oil exports and high floating storage inventories would weigh on crude oil prices in the short term.

In the next part of this series, we’ll analyze gasoline demand.

Latest articles

19 Jul

Afya's IPO Sees Strong Listing Gains

WRITTEN BY Mohit Oberoi, CFA

Afya (AFYA) listed on the Nasdaq Global Select Market on July 19. The company priced its IPO at $19 per share.

19 Jul

What to Watch For in Amazon's Q2 Earnings

WRITTEN BY Sanmit Amin

e-Commerce giant Amazon (AMZN) is scheduled to report its second-quarter earnings results after the closing bell on July 25.

19 Jul

Barrick Gold Reaches Deal to Buy Acacia Mining

WRITTEN BY Anuradha Garg

After a long standoff, Barrick Gold (GOLD) and Acacia Mining (ABGLF) have reached an agreement.

19 Jul

Comcast Shares Pop on Goldman's Optimism

WRITTEN BY Ruchi Gupta

Comcast (CMCSA) shares popped after Goldman Sachs issued a positive note on the company recently. Goldman upgraded its rating for Comcast to "buy" from "hold."

19 Jul

Why Analysts Are Bearish on Netflix Stock

WRITTEN BY Aditya Raghunath

Netflix stock fell over 10.0% on Thursday and is down 0.5% today as well.

On Thursday, pet retailer Chewy (CHWY) reported its first-quarter results after the market closed. The company reported its earnings for the first time.