SunSirs: API Crude Oil Inventories Surge, Gasoline and Distillate Fuel Inventories Decline

On Tuesday, November 4th, data released by the American Petroleum Institute (API) showed that U.S. crude oil inventories increased last week, while gasoline and distillate fuel inventories declined. For the week ending October 31st, U.S. crude oil inventories increased by 6.52 million barrels, gasoline inventories decreased by 5.65 million barrels, and distillate fuel inventories decreased by 2.46 million barrels. Previous forecasts indicated a roughly 600,000-barrel increase in crude oil inventories, a roughly 1.1 million-barrel decrease in gasoline inventories, and a roughly 2 million-barrel decrease in distillate fuel inventories.

The API data showed that U.S. crude oil inventories increased by 6.52 million barrels in the week ending October 31st, far exceeding the predicted 600,000-barrel increase. This reflects oversupply and weak demand, posing a significant bearish factor for spot prices. The unexpected accumulation of inventories could increase market supply pressure, pushing spot prices down.

The API data also showed a 5.65 million-barrel decrease in gasoline inventories, far less than the predicted 1.1 million-barrel decrease, indicating stronger-than-expected demand. This is a significant positive for gasoline spot prices, as the sharp decline in inventories could trigger supply shortages, supporting an upward price trend.

Distillate fuel inventories decreased by 2.46 million barrels, close to the predicted decrease of 2 million barrels, indicating robust demand. This is generally positive for spot prices, as declining inventories are generally bullish for the market. However, since it was in line with expectations, the impact is neutral to slightly positive, potentially providing a minor boost to prices.

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