US DATA: API reports sharp build in crude stocks, products lower
Quantum Commodity Intelligence – US crude oil stocks posted a sharp increase for the week ending 3 November, while refined products showed more modest declines, according to a report released late Tuesday by the American Petroleum Institute.
The latest API numbers revealed a 11.9 million-barrel jump in crude inventories, while the key Cushing storage hub, the delivery point for the NYMEX WTI crude futures contract, added 1.1 barrels.
Stocks in Cushing last month had dropped to a nine-year low of 21 million barrels, which analysts warned was close to minimum operational levels needed to keep volumes flowing efficiently and maintain the WTI quality.
Inventories held in the Strategic Petroleum Reserve were unchanged on the week, but on Tuesday the Department of Energy tendered for up to 3 million barrels of crude for January delivery.
Gasoline stocks fell by 400,000 barrels, while distillates dropped by 2.0 million barrels, as the primary refined-product classes posted API draws for a fourth consecutive week.
The weekly API report usually serves as a forerunner to the closely watched Energy Information Administration Weekly Petroleum Status Report, but this week's EIA report will be held over until next Wednesday due to a system upgrade.
Meanwhile, the 3-2-1 crack spread, a measure of US refining profitability against gasoline and heating oil margins, was around $23/b based on Dec23 futures contracts early Wednesday, compared to around $22b at the same stage last week.
