U.S. Crude Oil Stocks Fall to 320.4 Million Bbl Amid Bullish API Report

Strategic Insights -

Washington's weekly report by the American Petroleum Institute (API) showed a decline in U.S. crude oil stocks for the week ended January 27, falling to 320.4 million bbl, a decrease of 1.3 million bbl from the previous week. This marks a 10.1 million bbl drop from the same period last year, when crude oil stocks stood at 330.5 million bbl. The API report had a significant impact on the market, with the March crude futures contract on the New York Mercantile Exchange's (Nymex) overnight Access trading system experiencing an increase. Access crude trading in the March contract opened at $18.38/bbl and rose to $18.45/bbl after the API report was released. In contrast, the Department of Energy's Energy Information Administration (EIA) reported a less-drastic decline of 300,000 bbl in crude oil stocks, to a current level of 324.2 million bbl.

Key Takeaways:

  • U.S. crude oil stocks fell to 320.4 million bbl, a decrease of 1.3 million bbl from the previous week.
  • Crude oil stocks are 10.1 million bbl lower than a year ago, when they were 330.5 million bbl.
  • The March crude futures contract on Nymex's Access trading system experienced an increase after the API report was released, rising 7cts./bbl to $18.45/bbl.
  • Distillate fuel oil stocks dropped 2.8 million bbl to 136.8 million bbl, while EIA reported a larger decline of 4.5 million bbl.
  • Distillate stocks a year ago were 121 million bbl, 15.8 million bbl lower than current levels.
  • Distillate demand for the week was estimated to be 3.6 million b/d, stronger than last week's level of 3.5 million b/d.
  • Refinery utilization fell 1.2 percentage points for the week to 89.5%.
  • Motor gasoline stocks rose 2.6 million bbl from the previous week, while EIA cited a similar rise to 220.1 million bbl.
  • Crude oil imports rose 62,000 b/d to 6.5 million b/d from the previous week.

Statistics:

  • U.S. crude oil stocks: 320.4 million bbl (down 1.3 million bbl from the previous week)
  • Crude oil stocks a year ago: 330.5 million bbl
  • Distillate fuel oil stocks: 136.8 million bbl (down 2.8 million bbl from the previous week)
  • Distillate demand: 3.6 million b/d
  • Refinery utilization: 89.5% (down 1.2 percentage points from the previous week)
  • Motor gasoline stocks: 215.3 million bbl (up 2.6 million bbl from the previous week)
  • Crude oil imports: 6.5 million b/d (up 62,000 b/d from the previous week)

Sources:

  • American Petroleum Institute (API)
  • Energy Information Administration (EIA)
  • Pegasus Econometric Group
  • New York Mercantile Exchange's (Nymex) Access trading system