Oil Prices Rebound Strongly As Gasoline Inventory Drew More Than Expected
The US Energy Department reported +1.31 mmb increase in crude inventory in the week ended October 16. Moreover, Cushing stock also built +0.46 mmb to 26 mmb. Despite this, it's better than market expectation of an +1.5 mmb build.
Concerning oil products, both gasoline and distillate stockpiles drew for the second week. Gasoline stocks declined -2.21 mmb to 206.9 mmb while distillated dropped -0.78 mmb to 169.9 mmb.
Crude oil rallies after the report. The benchmark contract touches 80.05 again and remains strong at around 79.8. Others in the energy complex also surge with heating oil advances to 2.07, the highest level since November 2008. RBOB gasoline also surges to 2.015, the highest level in 2 months.
US Oil Inventory
|Weekly change in inventory as of 16/10/09||Actual||Change||Market Expectation||Previous|
|Crude oil||339.1 mmb||+1.31 mmb||+1.50 mmb||+0.33 mmb|
|Gasoline||206.9 mmb||-2.21 mmb||-1.50 mmb||-5.23 mmb|
|Distillate||169.9 mmb||-0.78 mmb||-1.50 mmb||-1.08 mmb|
Comparison between API and EIA reports:
|API (Oct 16)||EIA (Oct 16)|
|Actual||Inventory||Previous||Forecast (using API's inventory level)||Inventory|
|Crude oil||+3.85 mmb||343.0 mmb||-0.17 mmb||+5.24 mmb||343 mmb|
|Gasoline||-0.56 mmb||209.8 mmb||-2.66 mmb||+0.84 mmb||210 mmb|
|Distillate||-1.00 mmb||167.0 mmb||+0.22 mmb||-3.67 mmb||167 mmb|
API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department (EIA)for its weekly survey. Oil inventories from the API and EIA moved in the same direction for over 70% of the time, using data in the past 4 years.
Source: Bloomberg, API, EIA