Weekly US crude and distillates rise, gasoline stocks fall, API shows.

The US crude and distillates rose, while gasoline stocks fell, according to API sources. The S&P GSCI Gas Oil Index showed mixed movements in oil and gasoline contracts. Analysts predict a third weekly draw in US crude oil stockpiles.

US crude oil inventories surged by 1.539 million barrels, defying forecasts and indicating weaker demand, according to the latest report from the American Petroleum Institute (API) [1]. This significant increase, which was more than twice the expected decline of 2.5 million barrels, signals a bearish trend for crude prices. The API report also showed a sharp contrast with the previous week's decrease of 0.577 million barrels, further underscoring the weakening demand for crude oil in the United States.

In contrast, gasoline stocks fell, while distillates rose. The NYMEX September West Texas Intermediate (WTI) contract was up by $1.04 to $67.76/bbl, nearing its intraday high [2]. The September and October Brent contracts also saw gains, with the September contract up by $1.10 to $71.14/bbl. However, distillate futures, primarily diesel, gave back some of Monday's increases, with the NYMEX August ULSD contract down by 2.45cts to $2.4021/gal [2].

Analysts predict a third weekly draw in US crude oil stockpiles, with estimates ranging from a stock build of 1.8 million barrels to a draw of 6.1 million barrels [3]. Gasoline and distillate inventories are expected to fall by 900,000 barrels and 100,000 barrels, respectively. Refinery capacity use is forecast to have slipped by a fifth of a percentage point to 95.3%.

Market participants will closely watch the next API report to determine if the recent increase in crude stock is a one-off deviation or a sustained trend. The U.S. Energy Information Administration is scheduled to release the inventory data on Wednesday at 10:30 a.m. ET.

References:
[1] https://www.investing.com/news/economic-indicators/us-crude-stock-swells-defying-forecasts-and-indicating-weaker-demand-93CH-4158506
[2] https://www.marketscreener.com/news/nymex-overview-oil-and-gasoline-contracts-rise-again-as-distillate-falters-opis-ce7c5fdedb88f226
[3] https://www.marketscreener.com/news/analysts-see-third-weekly-draw-in-u-s-crude-oil-stockpiles-ce7c5fded88eff21