US Crude Stocks Surge, Gasoline Inventories Rise – API Report
US Crude Stocks Hit Record High
Last week, US crude stocks possibly rose by nearly 13 million barrels, marking the highest build since February, according to the American Petroleum Institute (API). This significant increase in inventory levels could have long-lasting implications for the oil industry.
Gasoline Inventories Show Steady Growth
Gasoline inventories also experienced a substantial build for the second consecutive week, as reported by the API. The rise in gasoline inventories, which amounted to 12.94 million barrels, adds to the previous week’s gain of 3.946 million barrels.
Distillates Experience a Decline
On the other hand, inventories of distillates, a feedstock for diesel and heating fuel, witnessed a decline of 3.535 million barrels. This decrease contrasts with the prior week’s build of 0.349 million barrels.
Storage Levels at Cushing Show Promise
Storage levels at Cushing, the key storage hub for US crude, dropped by 0.547 million barrels compared to the previous week’s rise of 0.705 million barrels. This decrease is significant as it marks the first decline in months at Cushing.
API Data as a Precursor
The API data serves as a precursor to the official inventory data to be released by the US Energy Information Administration (EIA) on Thursday. Analysts anticipate a drop of 0.37 million barrels based on the API data. However, the EIA report may provide further insights into the current state of the oil market.
Anticipated Changes in Inventory Levels
Analysts tracked by Investing.com expect the EIA to report a decline of 0.37 million barrels, compared to the 2.224-million barrel reduction reported in the previous week. Additionally, a draw of 1.5 million barrels in gasoline inventories is expected, following the previous week’s significant jump of 6.481 million barrels. As for distillates, a drop of 1.5 million barrels is anticipated, in contrast to the prior week’s decrease of 1.269 million barrels.
With these latest developments in the US crude stocks and gasoline inventories, the oil industry is poised for potential changes. The EIA report will provide a more comprehensive understanding of the current market conditions and its impact on fuel prices and supply.