API Crude Oil Inventories Rise

Forex - The American Petroleum Institute (API) reported that oil stocks increased again in line with market expectations after a week-long decline. According to the API, the oil stocks, which decreased by 5.94 million barrels the previous week, rose by 1.23 million barrels in the week ending November 29. Market expectations indicated that stocks would increase by 2.06 million barrels.

Following this increase, crude oil stocks are now approximately 4 million barrels below their 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) rose by 1.4 million barrels to reach 391.8 million barrels. While SPR stocks remain about 45 million barrels above their lowest levels during the summer, they are still down by 243 million barrels since President Biden took office.

API gasoline stocks also increased for the second consecutive week. After rising by 1.81 million barrels the previous week, stocks rose by another 4.62 million barrels last week. Gasoline stocks are currently 3% below the five-year average for this time of year.

Distillate product stocks experienced an increase for the second week in a row as well. After rising by 2.54 million barrels the previous week, stocks increased by an additional 1.01 million barrels last week. Distillate product stocks remain approximately 5% below the five-year average.

In the Cushing region of Oklahoma, the world’s largest oil storage hub and the junction point of pipelines in the U.S., oil stocks saw a limited increase after three weeks of decline. Cushing oil stocks, which fell by 734 thousand barrels the previous week, increased by 112 thousand barrels last week.

The U.S. Department of Energy (DoE) is expected to report a decrease in oil stocks today, according to the Energy Information Administration (EIA). According to a survey conducted by WSJ, analysts predict that oil stocks, which decreased by 1.8 million barrels the previous week, will fall by an additional 1.2 million barrels in the week ending November 29.

The WSJ survey estimates a gasoline stock increase of 0.2 million barrels and a distillate product stock decrease of 0.1 million barrels. The survey anticipates that the capacity utilization rate announced by the DoE will rise from 90.5% to 90.9%.

DoE stock data will be announced at 18:30 TSI.