US DATA: API reports 10 million across-the-barrel stock draw

Quantum Commodity Intelligence – US crude oil stocks posted an unexpected drop for the week ending 20 October while refined products also declined, according to a report released late Tuesday by the American Petroleum Institute.

The latest API numbers revealed a 2.668-million-barrel fall in crude inventories against expectations for a gain of around 1.5 million barrels, although the key Cushing storage hub, the delivery point for the NYMEX WTI crude futures contract, added 513,000 barrels.

Inventories in Cushing the previous week had fallen to a nine-year low of 21 million barrels, according to last week's EIA government data, which analysts have warned is close to minimum operational levels that are needed to keep volumes flowing efficiently and maintain the WTI quality.

Gasoline stocks fell by 4.169 million barrels, while distillates dropped by 2.313 barrels to complete an across-the-barrel draw for a second 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 on Wednesday.

Meanwhile, the 3-2-1 crack spread, a measure of US refining profitability against gasoline and heating oil margins, was around $20.75/b based on Dec23 futures contracts, compared to around $20.50/b at the same stage last week when Nov23 were still the most liquid contracts.