Decoding US Gasoline and Distillate Inventories Last Week



US crude oil futures 

February WTI crude oil (USO) futures contracts rose 0.8% and were trading at $62.11 per barrel at 1:35 AM EST on January 4, 2018. Prices rose due to the API’s (American Petroleum Institute) bullish crude oil inventory report. WTI crude oil prices are at a three-year high. Higher oil (DWT) prices favor the Vanguard Energy ETF (VDE), which rose 1.5% to 102.3 on January 3, 2018.

Meanwhile, E-Mini S&P 500 (SPY) futures contracts for March delivery rose 0.08% to 2,713.3 at 1:35 AM EST on January 4, 2018.

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API’s gasoline inventories 

On January 3, 2018, the API published its crude oil inventory report. According to the API, US gasoline inventories rose by 1.9 MMbbls (million barrels) on December 22–29, 2017.

Analysts expected that US gasoline inventories would have risen by 1.8 MMbbls during the same period. Any rise in gasoline inventories is bearish for gasoline and oil (UWT) prices.

Lower oil (DBO) prices have a negative impact on energy companies (RYE) (PXI) like Northern Oil & Gas (NOG), Tesco (TESO), and Gastar Exploration (GST).

API’s distillate inventories  

The API added that US distillate inventories rose by 4.3 MMbbls on December 22–29, 2017. Analysts expected that US distillate inventories could have risen by 0.5 MMbbls during the same period. Any large build in distillate inventories is bearish for diesel and oil (USL) prices.

Next, we’ll analyze how Iran’s oil production impacts oil prices.


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