API and EIA reports influence U.S. crude oil prices

The API and EIA reports are two important weekly updates on U.S. crude oil inventories. They play a key role in influencing oil prices, but they collect data differently. The API, or American Petroleum Institute, releases its report on Tuesday evenings. It is based on voluntary surveys from its members in the oil and refining industry. This can lead to less comprehensive data. In contrast, the EIA, or Energy Information Administration, publishes a report on Wednesday mornings. Its data comes from mandatory surveys and includes a larger sample size, making it more representative of the entire market. While the API report is quicker, it may lack details. The EIA report allows for more thorough data processing. Both reports usually show trends in the same direction, but the extent of inventory changes can differ widely. Traders often look at the API report to predict what the EIA report will say, but large differences can cause sudden price changes. A key feature of the EIA report is its refinery utilization data. This data reveals demand for refined products like diesel and jet fuel. Understanding this metric is vital for anticipating supply issues and analyzing market trends. Overall, both reports are valuable to traders. The API report gives a quick snapshot, while the EIA report offers a detailed and verified overview. To make informed decisions, market participants should consider using both reports together.