The American Petroleum Institute (API) estimated that crude oil inventories in the United States rose 3.719 million barrels in the week ending April 3. In the week prior, US crude oil inventories rose by 10.263 million barrels. Analysts had expected a 1.598 million barrel draw.
Inventories in the US Strategic Petroleum Reserve (SPR) drew down for the second week in a row after a long and steady flow of barrels into the nation’s stockpiles that has spanned over a year. For the week ending April 3, 1.8 million barrels left the SPR, bringing the new total to 413.3 million barrels. This is 312.2 million barrels shy of maximum capacity.
US production was unchanged at 13.657 million bpd for the week ending March 27 after falling by 78,000 barrels over the previous five weeks, according to the latest EIA data. This is 77,000 bpd more than this same time last year.
At 4:24 pm ET, moments before data release, Brent crude was trading down on the day at $109.20 (-0.56%). This is still up $5 per barrel week over week, with continued disruption of tanker traffic through the Strait of Hormuz, oil production losses in Iraq, UAE, and Saudi Arabia, and physical barrel prices reaching a recod high. WTI was also trading down on the day, by $0.29 per barrel (-0.26%) at $112.10, although up $10 per barrel week over week.
While crude inventories increased, product inventories sagged.
Gasoline inventories fell this week by 4 million barrels in the week ending April 3. In the week prior, gasoline inventories fell by 3.209 million barrels. As of last week, gasoline inventories were 4% above the five-year average for this time of year, according to the latest EIA data.
Distillate inventories also fell, by 600,000 barrels, after shedding 1.04 million barrels in the week prior. Distillate inventories were 3% below the five-year average as of the week ending March 27, the latest EIA data shows.
Cushing inventory—the inventory kept at the delivery hub for the WTI Crude futures contract—slipped 600,000 barrels, after adding 784,000 barrels in the week prior.
By Julianne Geiger for Oilprice.com
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