The API report showed a small build in crude oil versus an expectation for a larger build and a surprise draw in distillate stocks along with a build in gasoline inventories but below the expectations. The API reported a build (of about 0.5 million barrels) in crude oil stocks and outside the expectation range as crude oil imports decreased while refinery run rates increased by 0.8%. The API reported a modest build in gasoline stocks. They also reported a surprise draw in distillate stocks versus an expectation for a more seasonal build in distillate fuel inventories.
The report is bullish for distillate, neutral for crude oil and for gasoline. The market has not reacted strongly in overnight trading but has been stabilizing for all commodities in the complex ahead of the EU meeting starting tomorrow. The market is always cautious on trading on the API report and prefers to wait for the more widely watched EIA report due out this morning at 10:30 AM. The API reported a build of about 0.5 million barrels of crude oil with a draw of 1.4 million barrels in PADD 2 and a decline of 0.682 million barrels in Cushing, Ok which is bearish for the Brent/WTI spread. On the week gasoline stocks increased by about 0.4 million barrels while distillate fuel stocks decreased by about 1.0 million barrels.