US DATA: API reports 1.6m bbl rise in crude stocks, Cushing falls
Quantum Commodity Intelligence – US crude oil stocks posted a moderate gain for the week ending 22 September, according to a report released late Tuesday by the American Petroleum Institute, although a fall in refined products helped offset the crude build.
The latest API numbers revealed a 1.6-million-barrel build against analysts' expectations for a draw of around 1.3 million barrels, while the key Cushing storage hub, the delivery point for the WTI crude futures contract, dropped another 828,000 barrels.
Cushing had already fallen by around 5 million in the previous two weeks, according to API figures, taking stocks at the key hub to the lowest levels since last summer, which in turn has lifted the Nov23/Dec23 WTI backwardation to around $1.75/b on Wednesday.
The Strategic Petroleum Reserve added 300,000 barrels as the low-scale buyback program continued after the Department of Energy released 180 million barrels from the SPR in 2022, but the recent surge in prices is expected to keep any further purchases at minimal levels.
Gasoline stocks dipped by 70,000 barrels last week, while distillate stocks dropped 1.7 million barrels as refined products offset the crude build.
The weekly API report serves as a forerunner to the closely watched Energy Information Administration Weekly Petroleum Status Report, which will be published later on Wednesday.
Meanwhile, the 3-2-1 crack spread, a measure of US refining profitability measured against gasoline and heating oil margins, retreated to around $23.50/b based on Nov23 futures contracts, compared to around $28.50/b this stage last week.
Gasoline has led the losses with NYMEX Rbob struggling following the collapse in arbitrage volumes to Europe, while US gasoil values failed to respond to Russia's announcement it will curb exports of refined products.
