NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

API weekly crude stock sees unexpected surge, indicating weaker demand

Published 10/09/2024, 04:38 AM

The American Petroleum Institute (API) reported a significant increase in its weekly crude stock, reflecting a possible weakening in demand for petroleum products. The actual inventory level surged to 10.900 million barrels, a stark contrast to the forecasted 1.950 million barrels.

This unexpected rise in crude inventories far exceeded the predicted figures, indicating a potential slowdown in the petroleum market. Analysts had anticipated a modest increase, but the actual figures revealed a more significant buildup in crude reserves. This suggests that demand may not be as robust as previously thought, which could exert downward pressure on crude prices.

Comparing the actual number with the previous data, there is a marked difference. The previous API weekly crude stock reported a decrease of -1.458 million barrels. The sharp swing from a decrease to a substantial increase further underscores the unpredictability of the market and the potential for weaker demand.

The API's weekly crude stock report is a key indicator of the state of U.S. petroleum demand. It provides insights into how much oil and product is available in storage. An increase in crude inventories typically implies weaker demand and has bearish implications for crude prices. Conversely, if the increase in crude is less than expected, it suggests greater demand and is bullish for crude prices.

The surprising surge in this week's crude inventories will likely lead to a reassessment of market dynamics. With the actual figures deviating so significantly from the forecast, analysts will be keenly watching the next report to ascertain whether this is a temporary blip or a sign of a more sustained downturn in demand.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.