US DATA: API reports 4.3 million across-the-barrel stock build

Quantum Commodity Intelligence – US crude oil stocks posted a modest build for the week ending 1 December, while refined products also increased to complete an across-the-barrel stock build, according to a report released late Tuesday by the American Petroleum Institute.

The latest API numbers revealed a slim 594,000-barrel build in crude inventories, missing forecasts for a decline of around 2 million barrels.

However, the key Cushing storage hub, the delivery point for the NYMEX WTI crude futures contract, surged 4.28 barrels, offsetting declines in other storage locations.

The Strategic Petroleum Reserve nudged up 300,000 bpd as the low-level restocking continued following last year's 180 million/b SPR drawdown.

Gasoline stocks increased by 2.83 million barrels, while distillates increased 890,000 barrels, as the middle of the barrel posted gains for a second week based on API data.

Oil markets showed little price reaction following the report, with attention again focused on the fallout from last week's  OPEC+ meeting with the outcome proving a drag on global oil prices.

Meanwhile, the 3-2-1 crack spread, a measure of US refining profitability against gasoline and heating oil margins, was around $23.50/b based on Jan24 futures contracts early Wednesday, down from $24.25/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.

Last week's figures from the EIA put US crude production at a record 13.2 million bpd for an eighth straight, which continues to underpin the surge in exports.

Vessel tracking an analytics firm Kpler calculated that US crude exports in November averaged 4.45 million bpd, the second-highest monthly figure on record, and just 100,000 bpd below the record set in March.

Exports in the Jan-Nov period averaged 4 million bpd, said Kpler, a 19% rise on the year.