Crude oil inventory declined -1.83 mmb to 361.4 mmb in the week ended June 4. This exceeded market expectations of a dip of -0.9 mmb. Increase in inventory level was seen in all regions except for the Gulf Coast where a drop of -4.66 mmb was recorded. Cushing stock also slid -0.47 mmb. Gasoline stockpile was flat from the prior week, compared with consensus of a drop of -0.3 mmb. Distillate stockpile increased +1.84 mmb to 154.8 mmb, higher than market forecast of +0.4 mmb.
WTI crude oil price extends gains after the report. Current trading at 74.7, crude's intra-day rally accelerated before US market opens amid rumors about strong macroeconomic data in China. Gasoline and heating oil prices also surge after the report with corresponding futures gaining +2.81% and +2.53%.
Weekly change in inventory as of 04/06/10
+/- 0 mmb
Comparison between API and EIA reports:
API (Jun 4)
EIA (Jun 4 )
Forecast (using API's inventory level)
API collects stockpile information on a voluntary basis from operators of refineries, 76% of the time, using data in the past 4 years.
Source: Bloomberg, API, EIA