US API crude oil stock change actual -4.565 million (forecast -, previous 2.4 million)

US API crude oil stock change actual -4.565 million (forecast -, previous 2.4 million)

US crude oil stocks decreased by 4.565 million barrels in the week ending April 18, 2025, according to the latest data from the U.S. Energy Information Administration (EIA). This figure was significantly lower than the forecasted build of 4 million barrels and the previous week's increase of 2.4 million barrels [2].

The decline in stocks comes amidst a backdrop of geopolitical tensions and sanctions. The US imposed sanctions on Shandong Shengxing Chemical Co. Ltd., a Chinese refinery, for purchasing Iranian crude oil worth over USD 1 billion. This action is part of the Trump administration's ongoing "maximum pressure" campaign on Iran, aiming to drive its oil exports to zero [1]. The sanctions are expected to increase pressure on Chinese importers of Iranian oil, who are the largest buyers of Iranian crude.

The decrease in US crude oil stocks is also influenced by rising global tensions, with the US and China engaged in a trade war and ongoing negotiations with Iran over its nuclear program. The increase in crude oil stocks in the past few weeks could be attributed to the strategic buildup by the US, which may be preparing for potential disruptions in global oil supply due to geopolitical uncertainties.

Analysts expect crude oil inventories to continue rising, with gasoline stocks likely to see an eighth consecutive draw. The refinery capacity use is seen rising, indicating a potential increase in production to meet demand [3].

Overall, the decline in US crude oil stocks is a reflection of the complex interplay between geopolitical tensions, sanctions, and global market dynamics. Investors and financial professionals should closely monitor these developments for potential impacts on energy prices and market stability.

References:
[1] https://www.wionews.com/world/us-slaps-sanctions-on-chinese-refinery-for-buying-iranian-crude-oil-worth-over-1bn-8970171
[2] https://tradingeconomics.com/united-states/crude-oil-stocks-change
[3] https://www.tradingview.com/news/DJN_DN20250422007410:0-analysts-see-increase-in-u-s-crude-oil-stockpiles/