What is API crude oil inventory? What is the impact on oil prices?
API is the abbreviation of American crude oil association, which is a non-governmental organization. It publishes the crude oil inventory data of the previous week at 4:30 a.m. Beijing time (5:30 p.m. winter time) every Wednesday. These data can reflect the consumption of American oil in the past week, indicating the economy and inflation, and have a certain impact on the future oil price and the US dollar.
Generally speaking, the decrease of API crude oil inventory indicates that the economy is active and the crude oil consumption is large, which is beneficial to the oil price.
If API crude oil inventory increases, it may be that the economy is not as expected, resulting in a backlog of crude oil, which is negative for oil prices.
API data is published before EIA crude oil inventory, so many people in the industry use API data to forecast EIA crude oil inventory, which is actually accurate.
In terms of the impact of API and EIA on oil price, the former is private, while the latter is official, but both have authority and accuracy. They can make waves in the crude oil market. If we have to compare them, the latter has a greater impact.