Derivatives
US Crude Oil Inventories Increase, Defying Analyst Expectations
The American Petroleum Institute reported that US commercial crude oil inventories increased by 1.786 million barrels for the week ending September 18. This rise was unexpected as analysts had forecasted a draw of approximately 500,000 barrels, resulting in a swing of more than 2 million barrels from the consensus.
A notable aspect of this report was the surge in inventories at Cushing, Oklahoma, the primary delivery hub for West Texas Intermediate futures, which saw an increase of 2.082 million barrels in just one week. This completely reversed the previous week's modest decline of 246,000 barrels.
In contrast, gasoline stocks decreased by 2.16 million barrels, and distillate inventories, which include diesel and heating oil, fell by nearly the same amount, 2.164 million barrels. Additionally, the Strategic Petroleum Reserve (SPR) saw a drawdown of 400,000 barrels, bringing total holdings down to 284.6 million barrels, the lowest level since the early 1980s.
This week's increase in crude inventories interrupts a trend of cumulative draws of approximately 39 to 41 million barrels over the past 22 to 23 weeks, at least temporarily.
FAQ
What did the American Petroleum Institute report about US crude oil inventories for the week ending September 18?
The American Petroleum Institute reported that US commercial crude oil inventories increased by 1.786 million barrels for the week ending September 18.
How did the actual increase in crude oil inventories compare to analyst expectations?
Analysts had forecasted a draw of approximately 500,000 barrels, resulting in a swing of more than 2 million barrels from the consensus.
What was notable about the inventory levels at Cushing, Oklahoma?
Cushing, Oklahoma, saw an increase of 2.082 million barrels in crude oil inventories, reversing the previous week's decline of 246,000 barrels.
What changes occurred in gasoline and distillate inventories during this reporting period?
Gasoline stocks decreased by 2.16 million barrels, and distillate inventories fell by nearly the same amount, 2.164 million barrels.
What is the current status of the Strategic Petroleum Reserve (SPR)?
The Strategic Petroleum Reserve experienced a drawdown of 400,000 barrels, bringing total holdings down to 284.6 million barrels, the lowest level since the early 1980s.