API Data Shows US Crude Stocks Edge Higher While Refined Product Supplies Keep Tightening

Weekly inventory estimates from the American Petroleum Institute (API), an industry group that tracks US oil stock movements, point to a modest build in crude and continued draws in refined products for the week ending September 18.

According to the API figures, US crude oil inventories increased by 1.786 million barrels during the week. That follows a much larger addition of 7.14 million barrels the week before, suggesting the pace of crude stock accumulation has slowed considerably.

The longer trend tells a more nuanced story. Commercial crude inventories — excluding the Strategic Petroleum Reserve (SPR), the federal emergency stockpile — have declined by 39 million barrels over the past 23 weeks. On a year-to-date basis, however, total US crude holdings remain up by roughly 12 million barrels, with SPR withdrawals helping keep that build contained. The week ending September 18 saw another 400,000 barrels drawn down from the SPR.

On the refined products side, gasoline and distillate supplies — the latter covering diesel and heating fuel — continued to fall, a signal that consumption of finished fuels has been outpacing refinery output in recent weeks. Tightening product inventories can influence wholesale fuel prices, which feed through to costs at the pump and for industrial and transportation users.

Inventory reports such as the API’s weekly survey are closely followed by energy market participants as an early read on the balance between supply and demand in the world’s largest oil consumer. The figures are released ahead of the US Energy Information Administration’s official weekly data, and analysts typically compare the two for consistency.

Separately, in water and natural gas utility coverage, American States Water (AWR) traded at $84.39, down 0.54% from its previous close of $84.85, with a market capitalization of roughly $3.34 billion.

What to watch

• The EIA’s official weekly petroleum status report for the same week, which will either confirm or diverge from the API estimates.
• Whether the drawdown trend in gasoline and distillate stocks continues into the autumn, when heating demand typically rises.
• The pace of future SPR withdrawals and any announced replenishment plans from the Department of Energy.

Source: original release