API DATA: Crude stocks lead 9 million bbl across-the-barrel draw
Quantum Commodity Intelligence – US crude oil inventories posted a steeper-than-expected draw for the week ending 20 September, while product stockpiles also retreated, according to a report released late Tuesday.
Latest data from the industry-backed American Petroleum Institute (API) showed a crude draw of 4.4 million barrels, going against the pre-release forecast for a smaller drop of around 1 million barrels.
The figure extended the broader summer trend, with the API calculating a combined drawdown of around 40 million barrels from July through September, which included just three small weekly gains during that period.
Meanwhile, the key Cushing storage hub, the delivery point for the NYMEX WTI futures contract, remained below the 23 million barrel mark, dipping a modest 26,000 barrels last week.
Cushing stockpiles were drained to a nine-year low of 21 million barrels last year, which at the time analysts warned was close to the minimum operational levels needed to keep volumes flowing efficiently and maintain the quality of WTI.
The Strategic Petroleum Reserve added 1.3 million barrels as the buyback program continued after the Department of Energy released 180 million barrels from the SPR in 2022, while the government has continued its restocking program into 2025 following recent tenders.
Products
Gasoline inventories posted a draw of 3.438 million barrels last week. Distillates also registered a fall of 1.115 million barrels for an across-the-barrel net drop of 8.892 million barrels, according to API calculations.
The 3-2-1 crack spread, a measure of US refining profitability against gasoline and heating oil margins, was again hovering at around yearly lows, although refined products largely kept pace with the continued WTI crude recovery from early-month lows.
Based on Nov24 contracts, the 3-2-1 crack was valued at around $15.50/b early Wednesday versus the $15.30/b at the same stage last week.
The weekly API report serves as a forerunner to the closely watched Energy Information Administration Weekly Petroleum Status Report, which will be published later Wednesday.
