The API survey dampens sentiment

Crude prices remained at 69 $/b for the September ICE Brent contract, as the API survey showed stock builds in the US, whereas the market consensus expected draws in crude and gasoline inventories. Indeed, the industry survey reported that crude inventories might build by 0.8 mb, while Cushing stocks were depleted by 3.9 mb. This would require large builds in the PADD3 region, when we see little evidence of a large rise in US net imports, as US crude exports were recorded at 2.9 mb/d for the week in question by Kpler’s measurements. On the refined product side, gasoline stocks may have built by 3.3 mb, while refinery runs expanded by 0.4%. This would likely require large inflows of refined product imports or a drop in gasoline demand, despite not seeing any material change in US mobility data.

US weekly stock change, mb

We will get more clarity on the US petroleum markets this afternoon with the weekly DOE data release. The release will greatly affect the September/October WTI time spread which has become the front-month spread since yesterday’s August contract expiry. We remain constructive on time spreads, despite the recent steep decline in time spread values, as stock draws should resume for the next weeks.

Share this news :

You might also read :

September 27, 2021

EUAs climbed to new record above 64€/t

The European power spot prices for today observed mixed variations from Friday to reach close levels near 140€/MWh. Averaging 141.94€/MWh in the four countries, the…
May 6, 2022

Prices maintain their uptrend

European gas prices maintained their uptrend overall yesterday, supported by the additional rise in coal prices: +3.20% for API2 1st nearby prices; +3.04% for Cal 2023 prices.…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?