US DATA: API posts 9m barrel crude draw, gasoline stocks higher

Quantum Commodity Intelligence – US crude oil inventories posted an unexpectedly sharp draw for the week ending 28 June, while gasoline stocks were higher, according to a report released late Tuesday.

Latest data from the industry-backed American Petroleum Institute (API) showed crude inventories retreated by 9.163 million barrels, exceeding expectations of a drop of less than 1 million barrels.

However, the key Cushing storage hub, the delivery point for the NYMEX WTI futures contract, increased by 404,000 barrels as stocks at the Oklahoma hub consolidated just above the 34 million barrel mark.

The Strategic Petroleum Reserve added another 400,000 barrels as the low-scale buyback program continued after the Department of Energy released 180 million barrels from the SPR in 2022.

Meanwhile, gasoline inventories posted another solid gain of 2.468 million barrels last week, while distillates registered a draw of 740,000 barrels for an overall net oil drop of 7.435 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 little changed with products largely tracking WTI crude. The 3-2-1 based on Aug24 futures contracts was valued at $24.40/b early Wednesday versus $24.40/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.