According to the American Petroleum Institute (API) report released on Wednesday, US crude stockpiles are anticipated to have increased last week, along with fuel inventories. Contrary to predictions of declines, oil enthusiasts are betting on higher energy demand as summer travel by road, air, and sea gains momentum.
During the week ending May 26, the API revealed that the US crude inventory balance rose by 5.2 million barrels, contrasting with the previous week’s drawdown of 6.8 million barrels until May 19.
In addition to the overall increase in crude stockpiles, the API noted a growth of 1.8 million barrels specifically at the Cushing, Oklahoma hub, which serves as a delivery point for US crude. In the preceding week, a Cushing build of 1.7 million barrels was reported.
Regarding fuel, the API reported a gasoline inventory increase of 1.9 million barrels and a distillate stock build of 1.8 million barrels. In the previous week, a gasoline drop of 6.4 million barrels and a distillate slide of 1.8 million barrels were observed.
The API’s data serves as a precursor to the official inventory data from the US Energy Information Administration (EIA), which is expected to be released on Thursday.
Analysts surveyed by Investing.com predict a decrease of 1.1 million barrels in crude stockpiles reported by the EIA for the last week, compared to the 12.5 million reduction reported for the week ending May 19.
In terms of gasoline inventory, the consensus is for a draw of 0.4 million barrels, following a decline of 2.1 million barrels in the previous week. Gasoline remains the leading fuel product in the United States.
Regarding distillate stockpiles, analysts anticipate a decrease of 0.1 million barrels, in contrast to the 0.6 million deficit recorded in the previous week. Distillates are essential for producing heating oil, diesel for various transportation modes, and jet fuel.
The data presented by API provides valuable insights ahead of the EIA’s official inventory data release, shedding light on the current state of the commodity market.
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