United States API Weekly Crude Oil Stock

Info

History

Chart

Impact:

Low

Latest Release:

Actual:

-6.356M

Forecast:

Previous/Revision:

6.513M

Period: Nov 2017

What Does It Measure?

The United States API Weekly Crude Oil Stock measures the number of barrels of crude oil held in inventory by commercial firms in the U.S., making it an essential indicator of supply and demand dynamics in the oil market. It primarily focuses on changes in inventory levels, which can signal shifts in production, consumption, and future price movements, with a key measure being the week-over-week change in the inventory level; an increase typically indicates oversupply, while a decrease suggests stronger demand.

Frequency

This report is released weekly, typically every Tuesday evening, providing investors with timely insights into the latest movements in crude oil stock levels.

Why Do Traders Care?

Traders pay close attention to the API Weekly Crude Oil Stock as it can significantly affect the price of crude oil and related assets such as currencies (e.g., CAD, AUD) and stocks within the energy sector. A larger-than-expected build in inventories can be bearish for oil prices, while a drawdown may lead to price increases, making it a critical factor in energy trading strategies and economic forecasts.

What Is It Derived From?

The API Weekly Crude Oil Stock is derived from a survey conducted by the American Petroleum Institute, which gathers data from a wide range of oil distributors, refineries, and storage facilities to compile an estimate of crude oil inventories. The data is collected through a voluntary reporting system and is subject to industry-standard methodologies to ensure accuracy and relevance in the oil markets.

Description

The API Weekly Crude Oil Stock report provides early insights into U.S. crude oil inventory levels, serving as a precursor to the official data published by the U.S. Energy Information Administration (EIA) on Wednesdays. As this report highlights short-term inventory changes, it offers traders valuable information to anticipate market trends, specifically in the context of the broader energy landscape and geopolitical factors influencing oil supply.

Additional Notes

This indicator is typically viewed as a leading economic measure for the oil market, as it can predict future changes in oil prices based on inventory levels. Compared to the official EIA report, the API figures tend to have a more immediate impact on market sentiment and are closely watched by traders and analysts for indications of future supply-demand balance.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bearish for Crude Oil, Bearish for Energy Stocks. Lower than expected: Bullish for Crude Oil, Bullish for Energy Stocks. The tone is usually neutral to bearish when significant inventory builds are reported but can signal tighter supply when draws occur, leading to potential bullish sentiment for crude oil prices, which is typically good for oil-related stocks but may lead to price adjustments in other sectors dependent on energy costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
Nov 21, 2017	-6.356M		6.513M
Nov 14, 2017	6.513M		-1.562M
Nov 07, 2017	-1.562M		-5.087M
Oct 31, 2017	-5.087M		0.519M
Oct 24, 2017	0.519M		-7.13M
Oct 17, 2017	-7.13M	-4.2M	3.097M	-2.93M
Oct 11, 2017	3.097M		-4.079M
Oct 03, 2017	-4.079M		-0.761M
Sep 26, 2017	-0.761M		1.443M
Sep 19, 2017	1.443M		6.181M
Sep 12, 2017	6.181M	2.91M	2.791M	3.271M
Sep 06, 2017	2.791M	4.6M	-5.78M	-1.809M
Aug 29, 2017	-5.78M	-1.5M	-3.59M	-4.28M
Aug 22, 2017	-3.59M		-9.2M