US petroleum inventory data for the week ending November 6:
-
Crude oil inventories: +4.657M barrels vs −1.109M expected. Prior −0.865M.
-
Distillate inventories: +4.071M barrels vs −0.968M expected. Prior −3.565M.
-
Gasoline inventories: +1.799M barrels vs −0.084M expected. Prior −0.222M.
-
Cushing crude inventories: +0.106M barrels. Prior +0.280M.
-
Refinery utilization change: +0.7 percentage point vs +0.4 expected. Prior +1.7 points.
Tuesday’s private inventory data from the American Petroleum Institute (API) showed builds as well:
-
Crude oil: +9.0M barrels.
-
Gasoline: +4.0M barrels.
-
Distillates: +1.5M barrels.
-
Cushing: +0.182M barrels.
The US Energy Information Administration’s weekly petroleum figures showed unexpected builds across crude oil, gasoline and distillate inventories. Crude stocks increased by 4.657 million barrels against expectations for a 1.109 million-barrel draw—a 5.766 million-barrel upside surprise.
Tuesday’s private data had already flagged broad inventory increases. The EIA crude build was smaller than the API’s 9.0 million-barrel increase, while gasoline also posted a smaller build. However, the EIA distillate increase of 4.071 million barrels was considerably larger than the private estimate of 1.5 million.
Quick analysis: The numbers lean bearish for oil relative to consensus, with inventories rising across all three major categories. However, traders who adjusted expectations after Tuesday’s API report may take some relief from the smaller crude and gasoline builds. The larger distillate build offsets that detail. Weekly trade flows and refinery activity can influence inventories, so the increases alone do not establish weaker demand. Any sustained pressure on energy prices could help headline inflation, but one weekly report has limited implications for Fed policy.
What this report measures: The Energy Information Administration (EIA) Weekly Petroleum Status Report tracks US petroleum inventories, refinery activity, production and trade flows. The American Petroleum Institute publishes a separate private survey ahead of the government report; differences in survey coverage and methodology mean the figures can diverge. Traders watch unexpected builds or draws for clues about supply, demand and oil prices.
This article was written by Greg Michalowski at investinglive.com.