API Crude Oil Inventory Report

What is API?

"API stands for American Petroleum Institute. API is the only national trade association on behalf of all aspects of the oil and natural gas industry". It ropes 10.3 million U.S. jobs and nearly 8 percent of the U.S. economy.

More than 625 members are API’s include many incorporated companies, also refining, marine businesses, marketing, pipeline, service, and supply firms. They provide the majority of the nation’s energy and are supported by a growing movement of more than 40 million Americans.

Today API is accepted globally for its wide array of programs.

What is the impact of API Crude oil inventory report on the market?

API reports inventory levels of US crude oil, petrol and distillate stocks on a weekly basis. The numbers show how much oil and refined products are on hand in storage.

The indicator value provides an outline of US petroleum demand.

Suppose crude inventories increased more than the expected number of inventories, it causes weaker demand and also leads to the bearish movement for crude prices.

Likewise, if a decline in inventories is less than expected. If the increase in crude is less than expected, it entails greater demand and is bullish for crude prices and the same can be said if a decline in inventories is more than expected.

For Example:

Release Date Time Actual Forecast Previous
6-Jun-18 2:00 1.001M
31-May-18 2:00 1.001M -1.300M
23-May-18 2:05 -1.300M -2.800M 4.854M
16-May-18 2:00 4.854M -1.850M
9-May-18 2:00 -1.850M 3.427M
2-May-18 2:00 3.427M 1.099M
25-Apr-18 2:00 1.099M -2.000M -1.047M
18-Apr-18 2:00 -1.047M 0.625M 1.758M
11-Apr-18 2:00 1.758M 0.100M -3.280M
4-Apr-18 2:00 -3.280M 1.700M 5.321M
28-Mar-18 2:05 5.321M 1.000M -2.739M
21-Mar-18 2:00 -2.739M 3.200M 1.156M

The API report is released before the EIA report. The API report primarily forecasts before the day of the release of EIA. It would be a reflection of the EIA more or less. API report is released early morning on Tuesday at (2. A.M) IST 5.30, Any Monday holiday, It is released next day of Wednesday The positive or negative momentum can be analyzed with the help of the API report. Based on this report, the inventory is released. After the release of the EIA, it loses its charm among investors.