Crude oil futures
February US crude oil (DWT) (UCO) futures contracts rose 0.2% and were trading at $59.7 per barrel at 1:00 AM EST on December 28, 2017. Prices rose due to the American Petroleum Institute’s (or API) bullish crude oil inventory report. Higher oil (DBO) prices benefit the Energy Select Sector SPDR ETF (XLE), which fell 0.3% to 72.3 on December 27, 2017.
Meanwhile, March E-Mini S&P 500 (SPY) futures contracts rose 0.03% to 2,686.2 at 1:00 AM EST on December 28, 2017.
API’s gasoline inventories
The API released its weekly crude oil inventory report on December 27, 2017. US gasoline inventories increased by 3.1 MMbbls (million barrels) between December 15 and December 22, 2017, according to the API.
The market surveys expected that US gasoline inventories would increase by 1.3 MMbbls during the same period. Any increase in gasoline inventories could have a negative impact on gasoline and oil (DBO) prices. Lower oil (UWT) prices are bearish for energy producers (XOP) (PXI) like Oasis Petroleum (OAS), Bill Barrett (BBG), BP (BP), and Comstock Resources (CRK).
API’s distillate inventories
According to the API, the US distillate inventories rose by 2.8 MMbbls between December 15 and December 22, 2017. Analysts expected that US distillate inventories could have declined by 0.5 MMbbls during the same period. Any unexpected rise in distillate inventories is bearish for diesel and oil (UCO) prices.
Next, we’ll cover how Iraq’s crude oil production impacts oil prices.