US Crude Oil Inventories Still Booming Despite Global Shortage Fears

The American Petroleum Institute (API) estimated that crude oil inventories in the United States rose 6.10 million barrels in the week ending April 10. In the week prior, US crude oil inventories rose by 3.719 million barrels. Analysts had expected a 1.3 million barrel draw.

Inventories in the US Strategic Petroleum Reserve (SPR) continue to draw down to alleviate the pressure on prices. For the week ending April 10, 4.1 million barrels left the SPR, bringing the new total to 409.2 million barrels. This is 316.3 million barrels shy of maximum capacity.

US production slipped to 13.596 million bpd for the week ending April 3 after falling by 61,000 barrels, according to the latest EIA data. This is 138,000 bpd more than this same time last year.

At 3:55 pm ET, moments before data release, Brent crude was trading down on the day at $95.10 (-4.26%). This is down roughly $14 per barrel week over week as the market still holds onto a sliver of hope that Iran and the US will get together and talk it out. Meanwhile, the IEA claimed that demand destruction had already begun. WTI was also trading down on the day, by $7.13 per barrel (-7.20%) at $91.95 down roughly $20 per barrel week over week.

Gasoline inventories rose this week by 626,000 barrels in the week ending April 10. In the week prior, gasoline inventories fell by 4 million barrels. As of last week, gasoline inventories were 3% above the five-year average for this time of year, according to the latest EIA data.

Distillate inventories fell by 3.4 million barrels, after shedding 600,000 barrels in the week prior. Distillate inventories were already 5% below the five-year average as of the week ending April 3, the latest EIA data shows.

Cushing inventory—the inventory kept at the delivery hub for the WTI Crude futures contract—slipped 1.7 million barrels, after falling by 600,000 barrels in the week prior.

By Julianne Geiger for Oilprice.com

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