US Crude Stocks Up, Cushing Storage Hub Sees Build Again: API
US Crude Stockpiles Rise Amidst Build at Cushing Storage Hub
Investing.com – According to the American Petroleum Institute (API), US crude stockpiles potentially increased by 1.3 million barrels last week, resulting in another build at the storage hub linked to oil contracts traded on the New York Mercantile Exchange. Additionally, the API’s weekly inventory report revealed declines in gasoline and distillate inventories.
Motor Fuel Demand and Refinery Maintenance Impact
Typically, motor fuel demand in the United States softens during this time of year as Americans drive less due to the transition from fall to winter. However, with refineries undergoing seasonal maintenance, larger-than-usual declines in fuel stocks are common, with limited replenishments.
Contrasting Figures and Storage Concerns
The API reported a decline of 1.347 million barrels in crude inventories during the week ended October 27. This contrasts with the previous week’s slump of 2.668 million barrels, primarily driven by a sharp decline in exports. In addition to the headline crude build, the API noted a second consecutive weekly inventory gain at the Cushing, Oklahoma storage hub, raising concerns about potential complications at the storage hub due to critically low levels.
Gasoline and Distillate Inventory Changes
The API’s data also revealed a gasoline inventory slide of 0.357 million barrels and a distillate stock drop of 2.313 million barrels. In the prior week, gasoline experienced a deficit of 4.169 million barrels, while distillates saw a drop of 2.313 million barrels.
Official Inventory Data and Enhanced Insights
The API’s data acts as a precursor to the official inventory data released by the US Energy Information Administration (EIA). This information provides valuable insights into the state of the energy market.
Overall, the latest API report highlights the rise in US crude stocks and the continuous build at the Cushing storage hub. It also sheds light on the impact of motor fuel demand, refinery maintenance, and the fluctuations in gasoline and distillate inventories. These developments provide crucial information for understanding the current state of the energy industry.
