US Crude Stocks Decline, Fuel Inventories Follow Suit
US Crude Stockpiles Fall Significantly, Fuel Inventories Also Drop
Investing.com – According to the American Petroleum Institute (API), US crude stockpiles potentially decreased by as much as 4.4 million barrels last week. This suggests that exports have picked up again after a previous slowdown, which resulted in a substantial build-up of stockpiles.
Declines in Gasoline and Distillate Inventories
API’s weekly inventory report also revealed declines in gasoline and distillate inventories. Gasoline, the primary fuel product in the United States, experienced a slide in stockpiles, as did distillates, which are used as feedstock for diesel and heating fuel.
Seasonal Factors and Refinery Maintenance Impact Fuel Demand
During this time of year, fuel demand in the United States typically softens as families settle back into school and college routines. Additionally, with the refinery industry undergoing seasonal maintenance, limited replenishments contribute to larger-than-usual declines in fuel stocks.
Crude Stocks Drop, Cushing Storage Levels Cause Concern
US crude stocks fell by 4.383 million barrels in the week ending October 13, according to the API. This contrasts with the previous week’s significant increase of 12.94 million barrels, primarily driven by a decline in exports. The API also noted a decline of 1.005 million barrels at the Cushing, Oklahoma delivery point for crude oil. Concerns arise as Cushing storage levels have dropped significantly, potentially complicating operations at the storage hub.
Gasoline and Distillate Inventories Experience Decline
In terms of fuel, the API reported a 1.578 million barrel slide in gasoline inventories and a 0.612 million barrel drop in distillate stockpiles. The previous week saw a build-up of 3.645 million barrels in gasoline stocks and a decline of 3.535 million barrels in distillates.
EIA’s Official Inventory Data and Analyst Expectations
The API data serves as a precursor to the official inventory data from the US Energy Information Administration (EIA), which is due to be released on Wednesday. Analysts tracked by Investing.com expect the EIA to report a decline of 1.4 million barrels in crude stocks for the previous week, compared to a build-up of 10.176 million barrels during the week ending October 6. Additionally, gasoline stocks are expected to decrease by 1.0 million barrels, following a decline of 1.313 million barrels the previous week. Distillate stocks are also anticipated to drop by 1.0 million barrels, in addition to the prior week’s deficit of 1.837 million barrels.
