Afternoon Market Overview
The API started the weekly inventory report cycle with a mixed inventory snapshot.
Crude oil stocks built less than expected, distillate fuel stocks declined more than the expectations while gasoline declined around the expected level. The total combined inventories of crude oil and products were modestly lower on the week.
Overall the market pared its intraday losses after the report was issued.
The API reported US crude oil stocks increased by 1.2 million barrels on the week. Cushing crude oil stocks decreased by 156,000 barrels. They also reported a 4.3 million bbl draw in distillate fuel inventories and a 1.2 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.