The American Petroleum Institute (API) announced a 439,000 barrel drop in crude oil inventory for Tuesday’s week ending May 21. For the week, analysts expected a draw of 1.050 million barrels. The American Petroleum Institute reported a minor increase in oil stockpiles of 620,000 barrels the previous week after analysts had projected a higher growth of 1.680 million barrels. The American Petroleum Institute statistics show crude oil inventories have increased by more than 50 million barrels since the start of 2020.
Oil prices started the day slightly lower, but by 10:30 EST, they had recovered to the previous day’s levels, as both bearish and optimistic signs kept prices from moving too far. WTI was trading up $0.10 (+0.15%) at $66.15 at the moment, after trading lower the day before the report publication. Brent crude was trading at $68.55 per barrel, up to $0.09 per barrel (+0.13%). WTI is up nearly $1 week over week, while Brent is only up to $0.15.
While crude oil inventories declined again this week, the Energy Information Administration said that US oil output increased for the second week in a row to 11 million barrels per day on average for the week ending May 14. The American Petroleum Institute recorded a 1.986 million-barrel decline in gasoline stocks for the week ending May 21, compared to a 2.837-million-barrel decline the week before. Analysts had predicted a weekly draw of 775,000 barrels.
After a 2.581-million-barrel drop last week, distillate inventories fell by 5.137 million barrels this week. Cushing inventories declined by 1.153 million barrels this week. The WTI benchmark was trading at $65.83 per barrel at 4:34 p.m. EDT, while Brent crude was trading at $68.44 per barrel.