US Crude Oil Inventories Post 95K Build vs 597K Expected: EIA Weekly Data
Key Takeaways
- •U.S. commercial crude inventories rose by 95,000 barrels in the latest EIA report, missing the 597,000-barrel increase expected by analysts.
- •The prior week’s crude stockpile gain was much larger, at 4.405 million barrels.
- •Gasoline inventories fell by 2.536 million barrels, exceeding the expected decline of 670,000 barrels.
- •Distillate inventories dropped by 2.228 million barrels, more than the 1.57 million-barrel draw forecast.
- •The API’s earlier survey showed a 4.2 million-barrel crude build, while WTI traded at $81.63 before the release after dipping to $79.62 earlier in the session.
U.S. commercial crude oil inventories rose by 95,000 barrels (+95K) in the latest week, according to the U.S. Energy Information Administration's (EIA) weekly petroleum status report, falling well short of analyst expectations for a 597,000-barrel (+597K) build.
The result marks a sharp slowdown from the prior week, when crude stockpiles increased by 4.405 million barrels (+4405K).
Refined products
- Gasoline inventories dropped by 2.536 million barrels (-2536K), a much larger draw than the 670,000-barrel (-670K) decline expected. The prior week showed a build of 688K.
- Distillate inventories fell by 2.228 million barrels (-2228K), exceeding the anticipated draw of 1.570 million barrels (-1570K). The prior week's change was -1530K.
Draws of that size in both major products typically direct attention to the refinery utilization and implied demand figures published in the same report, which help distinguish stronger consumption from reduced refining output. Distillates include diesel and heating oil.
API data from late yesterday
The American Petroleum Institute's (API) industry survey, released late yesterday, showed:
- Crude: +4200K
- Gasoline: -3200K
- Distillates: -500K
Market context
West Texas Intermediate (WTI) crude was trading at $81.63 ahead of the release, after falling as low as $79.62 earlier in the session following a Russian report of a ceasefire in Iran.
The intraday swing shows how geopolitical headlines were moving prices alongside the scheduled inventory data, with the weekly stockpile figures serving as one of several inputs for traders.
Background
The EIA, the statistical agency within the U.S. Department of Energy, publishes its Weekly Petroleum Status Report on Wednesdays, normally at 10:30 a.m. ET, with the next installment due the following Wednesday. The report tracks commercial inventories of crude oil and major refined products; the headline crude figure excludes the Strategic Petroleum Reserve. It is closely watched as a gauge of U.S. supply and demand conditions.
The API, an industry trade group, releases its own survey-based inventory estimates a day ahead of the government figures. The two datasets frequently diverge, as they did this week, when the API reported a 4.2-million-barrel crude build against the EIA's much smaller increase.
WTI is the U.S. crude benchmark, with futures contracts deliverable at the storage hub in Cushing, Oklahoma.
Source: Investinglive
