US crude stockpiles are expected to have increased last week, while fuel inventories saw a significant surge, according to a report released on Tuesday by the American Petroleum Institute (API). The findings present a mixed outcome for oil bulls who have been betting on higher oil demand as summer travel approaches.
The API report reveals that the US crude inventory balance declined by 1.71 million barrels in the week ending June 2. In the previous week ending May 26, the API reported a build in crude oil stocks of 5.202 million barrels.
Although there was an overall decrease in crude inventories, the API highlighted an inventory growth of 1.535 million barrels specifically at the Cushing, Oklahoma hub, which serves as a delivery point for US crude. This is compared to the previous week when a build of 1.777 million barrels was reported at Cushing.
Regarding fuel supplies, the API’s report indicates a buildup of 2.417 million barrels in gasoline inventories and a surge of 4.5 million barrels in distillates. In the previous week, a build of 1.891 million barrels was noted for gasoline, along with a build of 1.849 million barrels for distillates.
The latest API report holds particular significance for the industry, as it provides insights into demand leading up to the Memorial Day holiday on May 29, which unofficially marks the start of peak summer travel in the United States.
Furthermore, this data serves as a preliminary indication ahead of the official inventory figures on crude oil and fuel from the US Energy Information Administration (EIA), which will be released on Wednesday.
Analysts surveyed by Investing.com anticipate that the EIA will report a 1.152 million barrel build in crude stockpiles for last week, in contrast to the 4.488 million barrel increase during the week ending May 26.
Regarding gasoline inventories, the consensus among analysts is a draw of 0.239 million barrels, compared to the previous week’s decline of 0.207 million barrels. Gasoline is the primary fuel product consumed in the United States.
As for distillate stockpiles, analysts expect a decrease of 0.110 million barrels, following the gain of 0.985 million barrels in the previous week. Distillates are refined into heating oil, diesel fuel for trucks, buses, trains, ships, and jet fuel.
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