Bullish API Report for week ending Oct. 24

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The American Petroleum Institute (API) estimated that crude oil inventories in the United States saw a large dip of 4 million barrels in the week ending October 24, when analysts had expected oil inventories to contract by a smaller 2.9 million barrels.

Gasoline inventories also saw a large decrease, of 6.3 million barrels in the week ending October 24, after losing 236,000 barrels in the week prior. As of last week, gasoline inventories were slightly below the five-year average for this time of year, according to the latest EIA data.

Distillate inventories also fell in the reporting period, losing 4.4 million barrels, on top of the week prior’s 974,000-barrel drawdown. Distillate inventories were already 7% below the five-year average as of the week ending October 17, the latest EIA data shows.

Cushing inventory—the inventory kept at the delivery hub for the WTI Crude futures contract—rose by 1.7 million barrels.

By Julianne Geiger for Oilprice.com

MY TAKE: IEA will keep telling us that the "glut" is just a few weeks away.