API Reports Big Storage Draw, Will EIA Report The Same?
Summary
- API estimates show a drop of 8.1 million bbls in crude storage last week.
- Running difference is currently at the average indicating that EIA's report will show similar magnitude storage draws as API's estimates.
- Be mindful that SPR also released 2.6 million bbls last week with 700k bbls left until November.
Welcome to the API vs EIA edition of Oil Markets Daily!
API reported staggering storage figures today.
Source: EnergyBasis
API estimates that crude storage dropped 8.1 million bbls, gasoline stock fell 801k bbls, distillate stock increased 2.1 million bbls, and Cushing stock decreased 2 million bbls.
Remember that there were 2.6 million bbls released from SPR last week could temper crude storage estimates this week in EIA’s crude storage report tomorrow. From now until November, SPR release will only be 700k bbls.
Here’s the latest update on where API vs EIA is on the running difference:
We wrote in an article on June 19 titled, “Weekly Oil Markets Recap - Solving The Mystery Of API Vs. EIA Data And What To Believe.” Please read this article first for a primer on what to expect for EIA’s figures tomorrow.
As you can see from the chart above, the current running difference is 5.94 million bbls or close to the average of 6.82 million bbls from 7/7/2015 to 7/4/2017. This means that EIA’s report tomorrow will at least be close to what API reported.
On the surface, this appears to be a bullish storage report the oil bulls have been waiting for, and we will be waiting eagerly tomorrow to see if EIA reports something of the same magnitude.
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This article was written by
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