API’s crude oil inventories
On June 6, 2017, the API (American Petroleum Institute) released its weekly crude oil inventory report. The API estimated that US crude oil inventories fell by 4.6 MMbbls (million barrels) between May 26, 2017, and June 2, 2017. Inventories have fallen by ~27 MMbbls in the last ten weeks. US crude oil (UCO) (FXN) (SCO) prices fell in post-settlement trade on June 6, 2017, despite the fall in inventories. Crude oil prices are trading near a one-month low.
Inventories at Cushing fell by 1.6 MMbbls between May 26, 2017, and June 2, 2017, according to the API. The fall in inventories at Cushing also helped oil prices.
API’s gasoline inventories
The API estimated that US gasoline inventories rose by 4.08 MMbbls between May 26, 2017, and June 2, 2017. US distillate inventories rose by 1.75 MMbbls during the same period.
EIA’s crude oil inventories
The EIA (U.S. Energy Information Administration) will release its weekly crude oil inventory report on June 7, 2017. A Wall Street Journal survey estimates that US crude oil inventories would have fallen by 3.5 MMbbls between May 26, 2017, and June 2, 2017. If the EIA reports a draw, it would be the ninth straight decline for US crude oil inventories, which could support oil prices. Crude oil prices have risen 1% in the last four weeks.
In the next part of this series, we’ll analyze gasoline demand.