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Why Traders Are Tracking the API’s Crude Oil Inventories

Gordon Kristopher - Author
By

Nov. 20 2020, Updated 2:26 p.m. ET

Crude oil futures 

August US crude oil (BNO) (IEZ) (XES) futures contracts fell 0.1% to $47.03 per barrel in electronic trade at 1:40 AM EST on July 5, 2017. Crude oil prices are near a one-month high.

Higher crude oil prices are positive for oil and gas producers like Denbury Resources (DNR), ExxonMobil (XOM), and QEP Resources (QEP).

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API’s crude oil inventories 

On July 5, 2017, the API (American Petroleum Institute) will release its weekly crude oil inventory report. Read Will API and US Crude Oil Inventories Drive Prices Higher? for details on the previous report.

A market survey estimates that US crude oil inventories fell by 2.83 MMbbls (million barrels) on June 23–30, 2017. Likewise, gasoline inventories might have fallen by 0.5 MMbbls during the same period. However, market surveys estimate that US distillates inventories rose by 0.36 MMbbls on June 23–30, 2017.

EIA’s crude oil inventories 

The EIA (U.S. Energy Information Administration) will release its weekly crude oil inventory at 10:30 AM EST on July 6, 2017. The EIA usually releases the report on Wednesday. However, the US Independence Day holiday on July 4, 2017, led to the change. For details on the previous report, read US Crude Oil Inventories Rose for the Second Time in 10 Weeks.

Impact 

US crude oil inventories have fallen 5% from the peak. Inventories have also fallen by 23.1 MMbbls in the last ten weeks. The expectation of a fall in US crude oil and gasoline inventories could support oil and gasoline prices.

In the next part of this series, we’ll analyze how OPEC’s crude oil production and exports impact crude oil prices.

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