Afternoon Market Overview

The API started the weekly inventory report cycle with a mostly bearish inventory snapshot. Crude oil inventories built versus a market expectation for a modest draw as distillate stocks also built with a surprise draw in gasoline inventories.

The total combined inventories of crude oil and products were higher on the week. Overall the market traded slightly lower after the report was issued. The API reported US crude oil stocks increased by 1.8 million barrels on the week. Cushing crude oil stocks decreased by 3.2 million barrels. They also reported a 2,7 million bbl build in distillate fuel and a 1.5 million bbl draw in gasoline stocks.

Total combined inventories of crude oil and refined products were higher for the week and outside the range of market expectations. This week’s US inventory data will be reflective of a normal operating environment and following the normal predictive models. Crude oil stocks likely decreased as refiner demand for crude oil increased while refined product inventories are projected to increase in this week’s report.

Canadian imports into the US for the week ending November 17 decreased by 77,000 bpd to 3.377mn bpd and are now 335,000 bpd below the previous all-time record-high reached earlier in the year, per the U.S. Energy Information Agency. Imports of Canadian crude likely decreased strongly last week due to the shutdown of the Keystone pipeline.