The data originates from a privately-conducted survey by the American Petroleum Institute (API) regarding oil storage facilities. An official report from the US Energy Information Administration (EIA) is expected to be released the following morning.
The EIA report includes detailed statistics on refinery inputs and outputs, alongside overall crude oil storage levels. It also covers variations from the previous week and different grades of crude oil, such as light, medium, and heavy, making it generally regarded as more comprehensive than the API survey.
Api Survey Versus Eia Report
The API survey offers an early perspective on US crude oil inventories, but its voluntary nature means the data may lack the precision of official government figures. By contrast, the EIA report is mandatory, incorporating a wider range of refineries, terminals, and storage sites. Frequent disparities exist between the two reports, occasionally leading to abrupt price movements when forecasts prove inaccurate.
Market participants often react to the API figures in anticipation of the EIA release. If the private survey indicates a decline in stockpiles, traders may pre-emptively adjust positions before official confirmation arrives. The potential for misalignment between the two sets of data adds uncertainty, sometimes amplifying volatility. Even when the API figures align with expectations, the official report can still generate movement if refinery utilisation rates or demand metrics diverge from projections.
Supply constraints remain a focal point, particularly given ongoing production adjustments from key oil-producing nations. Recent export trends suggest shifting trade flows, with certain refiners sourcing crude from alternative suppliers due to logistical or pricing considerations. Shifts in global demand, particularly from Asian economies, have also influenced inventory drawdowns or builds, affecting short-term price fluctuations.
Refinery Throughput And Seasonal Trends
Beyond storage levels, refinery throughput provides insight into seasonal demand changes. With summer approaching, rising fuel consumption typically drives higher utilisation rates. Any unplanned maintenance or disruptions could tighten supply, adding further complexity to pricing expectations. Conversely, weaker refining margins might curb processing rates, potentially leading to stock builds even if demand remains steady.
In the weeks ahead, particular attention should be paid to how these storage reports align with broader demand indicators. A single data point rarely reshapes market direction, but consecutive reports showing consistent trends can shift sentiment.
