API DATA: Crude extends summer drawdown, Cushing stocks slump
Quantum Commodity Intelligence – US crude oil inventories posted a steeper-than-expected draw for the week ending 6 September, while gasoline stockpiles also eased, according to a report released late Tuesday.
Latest data from the industry-backed American Petroleum Institute (API) showed a crude draw of 2.79 million barrels, outpacing the pre-release forecast for a build of around 700,000 barrels.
The lower figure extended the broader summer trend, with API calculating a combined drawdown of over 35 million barrels during July and August, which included just two small weekly gains during that period.
The key Cushing storage hub, the delivery point for the NYMEX WTI futures contract, also continued its lower summer trend, tumbling another 2.6 million barrels as inventories at the Oklahoma hub dipped below the 25 million barrel mark.
Last year Cushing stockpiles drained to a nine-year low of 21 million barrels, which at the time analysts warned was close to minimum operational levels needed to keep volumes flowing efficiently and maintain the WTI quality.
The Strategic Petroleum Reserve added a modest 300,000 barrels as the buyback program continued after the Department of Energy released 180 million barrels from the SPR in 2022.
Products
Meanwhile, gasoline inventories posted a draw of 513,000 barrels last week. Distillates registered a small build of 191,000 barrels for an across-the-barrel net fall of 3.1 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 again under pressure as RBOB gasoline slumped to fresh yearly lows amid collapsing WTI crude prices.
Based on Oct24 contracts, the 3-2-1 crack was valued at around $15.55/b early Wednesday versus the $15.75/b at the same stage last week.
The weekly API report serves as a forerunner to the closely watched Energy Information Administration Weekly Petroleum Status Report, which will be published later Wednesday.
