Preview of EIA's weekly oil storage report

[dan_s]

The American Petroleum Institute reports U.S. crude oil and refined products:
> Crude Oil Inventory build of 1.1 million barrels
> Gasoline inventories show a draw of 2.72 million barrels
> Distillates inventories declined by 1.91 million barrels.

WTI prices have been stable since the API numbers were released. Actually WTI is up 10 cents in after hours trading as I write this post.

Personally, I think the markets overreact to the headline numbers since the API and EIA numbers are wild asses guesses anyway. The "Devil is in the Details". So what if crude oil inventories moved up on increased imports. That is just a move oil in offshore tanks to onshore tanks. Demand for refined products clearly exceeds supply, we have lower than normal inventories on days of supply already and demand for transportation fuels spikes in May and June.