Crude oil inventory surged +2.76 mmb to 360.6 mmb in the week ended April 30. Compared with market expectation of a +1.1 mmb build, the actual increase was more than double and a large part of it was driven by Cushing stock which soared +1.68 mmb to a record high of 36.2 mmb. Gasoline and distillate stockpiles also rose, by +1.26 mmb and +0.57, respectively.
WTI crude oil price slumped to 79.15, the lowest level since March 22, before the report as Moody's warned of downgrading Portugal. Contagion fears linger in investors' mind. Oil price recovered to above 80 after the report. We see it as a technical rebound rather than any positive news suggested by the inventory data.
Weekly change in inventory as of 30/04/10
Comparison between API and EIA reports:
API (Apr 30)
EIA (Apr 30 )
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