US DATA: API reports 5 ml/b build in crude stocks, gasoline down

Quantum Commodity Intelligence – US crude oil inventories posted a higher-than-expected build for the week ending 26 April, while gasoline and distillates registered declines, according to a report released late Tuesday by the industry-backed American Petroleum Institute (API).

The latest API data showed crude inventories increased by 4.906 million barrels, going against forecasts of a smaller build of 1.5-2 million barrels flagged before the report's release.

The key Cushing storage hub, the delivery point for the NYMEX WTI futures contract, added a weighty 1.479 million barrels, extending the broader trend for higher stocks over the previous three months.

Inventories at Cushing now stand at around 34 million barrels, having dipped to a 2024 low of 28 million barrels in late January before rebounding.

The Strategic Petroleum Reserve added another 600,000 barrels as the low-scale buyback program continued after the Department of Energy released 180 million barrels from the SPR in 2022.

Restocking has generally been limited to around 3 million barrels per month after the DOE said logistics would limit throughputs. This figure is expected to continue over the short term based on oil already purchased, but the Department of Energy said early April it would pause its buyback programme due to rising crude prices.

Meanwhile, gasoline inventories eased another 1.48 million barrels last week, while distillates dropped 2.187 million barrels for an overall net oil build of 1.24 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 pegged at $28.68/b based on Jun24 futures contracts early Wednesday, largely unchanged versus week-ago levels.