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U.S. crude stocks down 6.8M barrels last week - API 

Published 05/23/2023, 04:50 PM
Updated 05/23/2023, 04:50 PM
© Reuters. -- U.S. crude stockpiles fell more than expected last week and fuel demand overshot expectations too, petroleum industry group API indicated in a report Tuesday as oil bulls bet on a pick up in energy demand in the run-up to summer road, air and seaborne travel.

The U.S. crude inventory balance fell by 6.799 million barrels during the week ended May 19, according to the API, or American Petroleum Institute. The petroleum industry group reported a crude build of 3.69M barrels in the prior week to May 12.

Notwithstanding the latest weekly slump in crude stockpiles, the API reported a 1.711M barrel build at the Cushing, Oklahoma delivery point for U.S. crude. It had also cited a build for Cushing in the previous week to May 12, reporting 2.87M barrels.

On the fuel side, API reported a gasoline inventory draw of 6.398M barrels and a distillate stock drop of 1.771M barrels. In the previous week, it noted a 2.46M barrel drop for gasoline and 0.886M slide for distillates.

The API data serves as a precursor to official inventory data on the same due from the U.S. Energy Information Administration, or EIA, on Wednesday.

For last week, analysts tracked by expect the EIA to report a crude stockpile drop of 0.920M barrels, versus the 5.04M barrel rise reported during the week to May 5.

On the gasoline inventory front, the consensus is for a draw of 0.695M barrels over the 1.381M-barrel decline in the previous week. Automotive fuel gasoline is the No. 1 U.S. fuel product.

With distillate stockpiles, the expectation is for a build of 0.057M barrels versus the prior week’s build of 0.080M. Distillates are refined into heating oil, diesel for trucks, buses, trains and ships and fuel for jets.

Latest comments

Why do the oil storage numbers decline despite continuing SPR sales? The main reason is following. US oil production dropped during the same week from 12.3 to 12.2 Mb/day. The latter number is 0.9 Mb lower than the max production number reached in 2020, the last year of Trump presidency. The deficit 0.9 Mb/day cumulates to 6.3 Mb weekly shortage, quite similar to present statistics.
what we need is another Putinski MBS spat so the saudis will flood the market again - so the GOP can claim to have done something that others did - something both trump and the GOP are good at claiming, other peoples accomplishments!
why would biden refill the spr when the saudi's will eventually sell to the GOP for half the price to make political points
Besides these very bullish numbers, Biden administration sold 1.6 Mb from SPR. This number can be added to 6.8 Mb decline in the US commercial oil storage, mentioned in the article. The total decline, commercial plus SPR, was 8.4 Mb.
 Even this pitiful number is just a promise, which will be likely broken.
Warm Camp, we'll report the SPR numbers when they become official -- as we've been doing each Wednesday. At least, there won't be as much foaming around the mouth this time from the longs, as we evidence each week when we report the API numbers sans the SPR -- as though we have something to "hide". The reality is we do what we do because the SPR numbers aren't official until they are verified by the EIA in its weekly report.
 Right?! Not unlike guessing how much gold is or isn't in Fort Knox. :)
There won't be a pip squeak this week about SPRs, I guess. LOL
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