Crude oil inventory rose +1.95 mmb to 362.5 mmb in the week ended May 7. This is higher than consensus forecasts of +1.6 mmb. Moreover, increase in Cushing stockpile, by +0.784 mmb, more than halved that in the prior week.

Concerning oil products, gasoline stocks surprisingly dropped -2.81 mmb to 222.1 mmb. With US' driving season approaching, further draw is anticipated. Distillate inventory surged 6 weeks in a row, by +1.4 mm during the week.

WTI crude jumped to 77 shortly after the report but gains evaporated as investors took profits. Currently crude oil price is trading close to yesterday's close. Gasoline and heating oil also spiked to 5-day (2.2345) and 4-day (2.1719) highs before pulling back.

Weekly change in inventory as of 07/05/10
Actual
Change
Market Expectation
Previous

Crude oil
362.5 mmb
+1.95 mmb
+1.60mmb
+2.76 mmb

Gasoline
222.1 mmb
-2.81 mmb
+0.80 mmb
+1.26 mmb

Distillate
153.8 mmb
+1.40 mmb
+1.30 mmb
+0.57 mmb

Comparison between API and EIA reports:

     

 
 
API (May 7)
 
 
EIA (May 7 )
 

 
Actual
Inventory
Previous
 
Forecast (using API's inventory level)
Inventory

Crude oil
+0.362 mmb
363.1 mmb
+3.00 mmb
 
+2.43 mmb
363 mmb

Gasoline
-0.906 mmb
222.4 mmb
+1.50 mmb
 
-2.94mmb
222 mmb

Distillate
+0.094 mmb
150.7 mmb
+1.70 mmb
 
-1.39 mmb
151 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