API Crude Oil Build Triples Forecast by EconMatters
Market Watch reported the American Petroleum Institute (API) late Tuesday reported that crude supplies rose 4.2 million barrels for the week ended April 24. That was three times more than the 1.4 million-barrel increase forecast by analysts surveyed by Platts.
Chart Source: Zero Hedge, April 28, 2015
API data also showed gasoline stockpiles rose 408,000 barrels, while distillate inventories also climbed 746,000 barrels. This API data is out to subscribers at 4.30pm ET and released publicly at 4.35pm ET. After the API data, WTI June 2015 contract traded below $57 from the day close of $57.06.
U.S. oil settled higher on Tuesday after news broke that Iran had seized a Marshall Islands-flagged MV Maersk Tigris cargo vessel in the Gulf, and the dollar dropping to an eight-week low on weak U.S. economic data. CNBC reported WTI has risen for six consecutive weeks, underpinned by net long positions while Brent hit a 4½-month high of $65.80 a barrel last week.
Oil has gained around 20% this month mostly on the high geopolitical tension in the Middle East, expectation of stock draw, and lower U.S. production. API data did show a small draw of 162,000 bbls in Cushing storage, but as we analyzed last week, the majority of inventory glut seems to have been moved from Cushing to PAD 3 Gulf Coast. With build on both crude oil and product sides, the API report is a big bear and oil party crasher. We will have to see what the official EIA inventory report looks like due out on Wednesday.