Market Report & Analysis for 4/5/2018 Afternoon Edition
Afternoon Market Overview
The API started the weekly inventory report cycle with a surprise draw in crude oil stocks offset by surprise builds in both gasoline and distillate fuel inventories.
Total combined inventories of crude oil and products were around unchanged on the week. Overall the market held onto its earlier price gains after the report was issued. The API reported US crude oil stocks decreased by 3.3 million barrels on the week. Cushing crude oil stocks increased by 4.1 million barrels.
They also reported a 2.2 million bbl build in distillate fuel inventories and a 1.1 million bbl build in gasoline stocks. Total combined inventories of crude oil and refined products were about unchanged 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.
We are maintaining our overall oil view and short-term bias at cautiously bullish. The current fundamentals are still supportive, and the externals are mostly supportive. The next few fundamental snapshots will provide further directional guidance.