API Crude Oil Inventories Decline More Than Expected

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API Crude Oil Inventories Decline More Than Expected

Forex - The American Petroleum Institute (API) indicated that oil stockpiles showed a decline over market expectations. According to the API statement, oil inventories rose by 4.75 million barrels the previous week but decreased by 5.94 million barrels for the week ending November 22. The market expectation was for a limited decline of around 250,000 barrels in stock.

Following this decline, crude oil inventories fell approximately 5.0 million barrels below the levels at the beginning of the year. Data released by the Department of Energy (DoE) indicated that crude oil stocks in the Strategic Petroleum Reserve (SPR) increased by 1.2 million barrels, reaching 390.4 million barrels. Although SPR inventories remain about 43 million barrels above their lowest levels during the summer, they are down 245 million barrels since President Biden took office.

API gasoline inventories reversed their direction after a week of decline. Stocks that decreased by 2.48 million barrels the previous week rose by 1.81 million barrels last week. Gasoline inventories are currently about 4% below the five-year average for this time of year.

A rise was also observed in distillate product stocks after a week of decrease. Stocks that fell by 688,000 barrels the previous week increased by 2.54 million barrels last week. Distillate product stocks are approximately 4% below the five-year average.

In the Cushing area of Oklahoma, which is the world's largest oil storage hub and a nexus for pipelines in the U.S., crude oil stocks fell for the third consecutive week. Cushing oil stocks, which dropped by 288,000 barrels the previous week, decreased by another 734,000 barrels last week.

A decline in oil stocks is expected in the data to be announced today by the U.S. Department of Energy (DoE) Energy Information Administration (EIA). According to a survey conducted by the WSJ, analysts predict that after a 500,000-barrel increase the previous week, there will be a 500,000-barrel decrease for the week ending November 22.

In the WSJ survey, the gasoline stock forecast indicates a decline of 600,000 barrels, and the distillate product stock forecast indicates an increase of 300,000 barrels. The survey anticipated that the capacity utilization rate to be announced by the DoE would rise from 90.2% to 90.3%.

The DoE stock data will be released at 18:30 TSI.