API Crude Oil Inventories Decline Slightly Against Expectations
Forex - The American Petroleum Institute (API) reported that crude oil inventories moved contrary to analysts' expectations and showed a limited decline. According to the API announcement, crude oil stocks, which increased by 1.64 million barrels in the previous week, decreased by 573,000 barrels in the week ending October 25. Market expectations were for an increase of 2.3 million barrels in stocks. Following this decline, crude oil inventories are approximately 6.0 million barrels below the beginning-of-year level.
Data from the Department of Energy (DoE) indicated that the Strategic Petroleum Reserve (SPR) crude oil stocks rose by 1.2 million barrels to 385.8 million barrels. Despite the SPR stocks being about 38 million barrels above their lowest levels during the summer months, they remain 249 million barrels below where they were when President Biden took office.
API gasoline stocks declined for the fourth consecutive week. Stocks decreased by 2.02 million barrels the previous week and by an additional 282,000 barrels last week. Gasoline stocks are currently 3% below the five-year average for this time of year.
The decline in distillate product stocks continued for the sixth week. Stocks fell by 1.48 million barrels the prior week and dropped by another 1.46 million barrels last week. This brings the total decline over six weeks to over 12 million barrels. Following this decrease, distillate product stocks are approximately 9% below the five-year average.
In the Cushing area, which is the world's largest oil storage hub and a junction for pipelines in the U.S., there was a limited increase in crude oil stocks where WTI is priced. Cushing oil stocks, which had decreased by 216,000 barrels the previous week, increased by 320,000 barrels last week.
An increase in crude oil stocks is expected in the data to be released today by the U.S. Department of Energy (DoE) Energy Information Administration (EIA). According to a survey conducted by WSJ, analysts anticipate that crude oil stocks, which rose by 5.5 million barrels the previous week, will increase by 1.0 million barrels in the week ending October 25.
The WSJ survey indicates no change in gasoline stock forecasts, while the distillate product stock estimate anticipates a decrease of 1.3 million barrels. The survey suggests that the capacity utilization rate reported by DoE will remain at 89.5%.
DoE stock data will be announced at 17:30 TSI.