Yesterday's API report was neutral to bearish showing a much larger build for gasoline stocks but no builds for either crude oil or distillate fuel. Total crude oil stocks were about unchanged versus an expectation for a modest build. Gasoline showed a larger than expected build in inventory while distillate fuel stocks declined versus an expectation for a small build. The API reported no change in crude oil stocks versus an industry expectation for a modest draw as crude oil imports decreased and as refinery run rates decreased by 0.9%. The API reported a small draw in distillate and a build in gasoline stocks.
The API report is neutral to bearish as the adjustments for the end of the year seem to be starting to return to normal. However, over the next several weeks I would expect to see crude oil imports and stocks to continue to rebuild as the industry readjusts. The oil market is mixed heading into the US trading session and ahead of the EIA oil inventory report at 10:30 AM today. 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. The API reported no change in total crude oil with PADD 2 stocks increasing by 1.5 million barrels while Cushing stock increased by 1.8 million barrels. On the week gasoline stocks increased by about 4.1 million barrels while distillate fuel stocks decreased by about 0.6 million barrels.