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In a recent report by the American Petroleum Institute (API), U.S. crude oil stocks piles are said to have risen by approximately 1.2 million barrels. Thus, the data is recorded in the last week, marking the first increase in five weeks.
End of Summer Driving Season
This surge in crude oil stocks coincides with the official conclusion of the summer driving period in the United States. It is marked by the Labor Day holiday on September 4. Thus, refiners had withdrawn nearly 20 million barrels of crude 4 weeks to meet the high fuel demand during the summer driving season.
Crude Oil Stocks API Data
The API indicated a possible dip of 1.174 million barrels in the U.S. crude inventory balance for the week ending September 8.
Cushing, Oklahoma Hub
Despite the overall gain in crude stockpiles, the API reported a decrease of 2.417 million barrels in the Cushing. While, Oklahoma hub, a major U.S. crude delivery point. In the previous week, the API had reported a deficit of 1.35 million barrels at Cushing.
Fuel Inventory Highlights
On the fuel front, the API reported a significant build-up, with gasoline inventories increasing by 4.210 million barrels and distillates by 2.592 million barrels. In the prior week, there was a draw of 5.09 million barrels for gasoline. In addition to, a gain of 0.31 million barrels for distillates.
EIA’s Upcoming Report
The API’s findings precede the official inventory data from the U.S. Energy Information Administration (EIA), set to be released on Wednesday. This report is eagerly awaited as it will influence crude prices. However, which have surged by more than 10% over the past two weeks. Thus, due to Saudi-Russian production cuts, prioritizing supply reduction over actual demand.
Analyst Expectations
Analysts, anticipate the EIA to report a drop of 2.299 million barrels in crude stocks piles for the past week. Therefore, when compared to a 5.96 million barrel reduction the week prior.
For gasoline inventories, consensus suggests a build of 0.436 million barrels, reversing the 0.261 million barrel decline seen in the previous week. Gasoline is the primary fuel product in the United States.
Regarding distillate stockpiles, the expectation is for a gain of 0.095 million barrels. Moreover, contrasting with the previous week’s increase of 0.296 million barrels. Distillates serve as the raw material for heating oil, diesel for various transportation modes, and jet fuel.
Disclaimer: This article serves solely for informational purposes and should not be construed as financial advice. Thus, we strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
