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Petroleum industry

Crude Oil Prices Experience Volatility Ahead of API Inventory Release

Strategic Insights

— 1 min read

Crude oil prices saw significant fluctuations ahead of the release of the American Petroleum Institute's (API) weekly inventory figures, with the May light, sweet crude contract reaching a high of $18.15/bbl, its highest front-month contract price since January 1998. However, the contract ultimately expired at $17.78/bbl, a 2-cent loss. The June contract settled at $17.48, a 15-cent loss. The API data released on Tuesday showed a decline in crude stocks, gasoline stocks, and distillate stocks, while the refinery utilization rate rose to 97.3% of capacity.

Key Takeaways:

  • The May light, sweet crude contract reached a high of $18.15/bbl, its highest front-month contract price since January 1998.
  • The contract ultimately expired at $17.78/bbl, a 2-cent loss.
  • The June contract settled at $17.48, a 15-cent loss.
  • API data showed a decline in crude stocks by 2.055 million bbl.
  • Gasoline stocks decreased by 25,000 bbl.
  • Distillate stocks dropped by 2.457 million bbl.
  • The refinery utilization rate rose to 97.3% of capacity.
  • Petroleos de Venezuela S.A. informed its customers of production cuts in line with the OPEC agreement.
  • Traders hoped for higher demand after disappointing numbers the last two weeks.

Statistics:

  • The May light, sweet crude contract expired at $17.78/bbl.
  • The June contract settled at $17.48.
  • Crude stocks fell by 2.055 million bbl.
  • Gasoline stocks decreased by 25,000 bbl.
  • Distillate stocks dropped by 2.457 million bbl.
  • The refinery utilization rate rose to 97.3% of capacity.
  • Prices for May gasoline closed at 52.41 cents/gallon.
  • Heating oil fell to 42.69 cents/gallon.
  • The Nymex Henry Hub May contract fell to $2.144/MMBtu.

Sources:

  • American Petroleum Institute (API)
  • New York Mercantile Exchange (Nymex)

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