The API started the weekly inventory report cycle with a surprise across the board draw in inventory.

Crude oil stocks declined versus an expectation for a modest build, distillate fuel stocks declined within the expectations while gasoline declined less than the market consensus. The total combined inventories of crude oil and products were modestly lower on the week. Overall the market added to its intraday gains after the report was issued.

The API reported US crude oil stocks decreased by 2.7 million barrels on the week. Cushing crude oil stocks increased by 1.6 million barrels. They also reported a 1.9 million bbl draw in distillate fuel inventories and a 1.1 million bbl draw in gasoline stocks.

Total combined inventories of crude oil and refined products were modestly lower for the week and outside the range of market expectations.

Crude oil stocks likely increased as refiner demand for crude oil decreased while refined product inventories are projected to be lower in this week’s report. Canadian imports into the US for the week ending Mar 9 decreased by 344,000 bpd to 3.098mn bpd and are now 537,000 bpd below the previous all-time record- high reached early in 2017, per the U.S. Energy Information Agency.