Via oilprice.com
Expectations I had seen centred on:
- Crude -1.3mln
- Distillate -2.5mln
- Gasoline -2.2mln
This data point is from a privately-conducted survey by the American Petroleum Institute (API).
- It's a survey of oil storage facilities and companies
- The official report is due Wednesday morning US time.
The two reports are quite different.
The official government data comes from the US Energy Information Administration (EIA)
- Its based on data from the Department of Energy and other government agencies
- Whereas information on total crude oil storage levels and variations from the previous week's levels are both provided by the API report, the EIA report also provides statistics on inputs and outputs from refineries, as well as other significant indicators of the status of the oil market, and storage levels for various grades of crude oil, such as light, medium, and heavy.
- the EIA report is held to be more accurate and comprehensive than the survey from the API
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On Tuesday crude prices came under pressure as improving sentiment around US–Iran talks weighed on the complex. The downside move was reinforced by reports that Iran may consider pausing shipping activity through the Strait of Hormuz to avoid jeopardising negotiations, alongside indications from both sides that they are open to continuing discussions.
On the diplomatic front, Trump told the New York Post that talks with Iran could take place within the next couple of days in Pakistan, while an Iranian embassy official in Islamabad suggested the next round may occur later this week or early next week.
Separately, the International Energy Agency (IEA) said global supply could outpace demand by around 410k barrels per day in 2026, while stressing that the restoration of flows through Hormuz remains a critical factor for the market outlook.
Against this backdrop, oil benchmarks trended lower throughout the session, ultimately settling near their intraday lows.
