Could the API's Crude Oil Inventories Push Crude Prices Higher?

Brent Crude

Daily November Brent Crude

"With the market moving into the winter season, distillate fuel supplies are notably tight, representing a change from the excess supplies seen in the last two years", Opec said in the report.

WTI crude futures are up 0.1% to $49.65/barrel, while Brent crude is up 0.13% to $55.86.

Oil prices also gained support by the International Monetary Fund's prediction that global economic growth is expected to be 3.6% this year and 3.7% next year.

Oil prices were stable early Tuesday with OPEC pointing to a rebalancing market even as the USA looked forward to getting production back following Hurricane Nate. The API usually releases the weekly report every Tuesday, but this report is scheduled to release on Wednesday due to the U.S. federal holiday on Monday, October 9, 2017. "I don't think there are many losers out there".

After settlement, crude prices pared gains when the industry group the American Petroleum Institute said its data showed USA crude stocks rose unexpectedly last week, while gasoline inventories decreased and distillate stocks built. Last month, it expected a 590,000 bpd year-over-year increase to 9.84 million bpd.

Top producer Saudi Arabia told OPEC it pumped 9.973 million bpd in September, up about 22,000 bpd from August and still below its OPEC target of 10.058 million bpd.

The OPEC agreement with Russian Federation and 10 other producers to take off 1.8 million bpd from the global oil market was originally supposed to last for six months, but in May this year the partners chose to extend it until the end of March 2018.

API said crude inventories rose 3.1 million barrels in the week to October 6.

This is up from 83 percent initially reported in August, as September's rise in overall OPEC output was led by Nigeria and Libya, which are exempt from the cut. From a technical standpoint, United States crude has staged an impressive rebound from the $49.08 level and a decisive breakout above $51 should encourage a further incline towards $52.40 a barrel, said Lukman Otunuga, research analyst at FXTM.

Monroe Energy, a subsidiary of Delta Air Lines Inc DAL.N , was shutting its 185,000 barrel-per-day Trainer, Pennsylvania, refinery due to a fire on Wednesday, a source familiar with the plant's operations said.

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