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
Market Expectation

Crude oil
361.4 mmb
-1.83 mmb
-0.90 mmb
-1.90 mmb

219.0 mmb
+/- 0 mmb
-0.30 mmb
-2.65 mmb

154.8 mmb
+1.84 mmb
+0.40 mmb
+0.45 mmb

Comparison between API and EIA reports:

API (Jun 4)

EIA (Jun 4 )


Forecast (using API's inventory level)

Crude oil
-4.54 mmb
357.0 mmb
-1.42 mmb

-6.24 mmb
357 mmb

+1.48 mmb
220.7 mmb
-0.96 mmb

+2.02 mmb
221 mmb

+3.00 mmb
155.8 mmb
+0.85 mmb

+3.01 mmb
156 mmb

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