Afternoon Market Overview

The API started the weekly inventory report cycle with a supportive inventory snapshot. Crude oil, and distillate fuel stocks declined more than the expectations while gasoline built.

The total combined inventories of crude oil and products were modestly lower on the week. Overall the market pared some of its intraday losses after the report was issued. The API reported US crude oil stocks decreased by 0.9 million barrels on the week.

Cushing crude oil stocks decreased by 2.6 million barrels. They also reported a 3.6 million bbl draw in distillate fuel inventories and a 1.5 million bbl build 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 also shown in the table above.

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 Feb 9 decreased by 95,000 bpd to 3.523mn bpd and are now 112,000 bpd below the previous all-time record- high reached early in 2017, per the U.S. Energy Information Agency.