The API report showed a much larger than expected build in crude oil stocks, a surprisingly large draw in gasoline stocks along with a surprise decline in distillate fuel inventories. The API reported a strong build (of about 7.8 million barrels) in crude oil stocks versus an expectation for a modest build in crude oil inventories as crude oil imports increased even as refinery run rates also increased by 0.2%. The API reported a large draw in gasoline stocks and a surprise draw in distillate stocks versus an expectation for a more seasonal build in inventories.
The report is bearish for crude oil but neutral to bullish for refined products. The market has drifted lower since the report has been issued but on relatively low volume. The market is always cautious on trading on the API report and prefers to wait for the more widely watched EIA report due out tomorrow. The API reported a build of about 7.8 million barrels of crude oil with a build of 1 million barrels in PADD 2 which is bullish for the Brent/WTI spread. On the week gasoline stocks declined by about 4.5 million barrels while distillate fuel stocks decreased by about 1.4 million barrels.