• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 8 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 10 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 10 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 1 day Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 2 days Modest drop in oil price: SPRs vs US crude inventory build
  • 2 days 2019 - Attack on Saudi Oil Facilities.
  • 2 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 4 days Ukrainian Maidan after 8 years
  • 4 days Peak oil - demand vs production
  • 5 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 5 days NordStream2
  • 5 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil Prices Soar After EIA Reports Large Crude Draw

A week after it reported the heftiest crude oil draw in more than six months, the Energy Information Administration once again had good news for oil bulls: the authority said crude oil inventories had shed 7.4 million barrels during the week to July 31.

A week earlier, the EIA said inventories had lost as much as 10.6 million barrels, after a build of 4.6 million barrels for the second week of July. Analysts had expected an inventory decline of 3.267 million barrels for the week to July 31.

A day before the EIA, the American Petroleum Institute reported an inventory draw of 8.587 million barrels for the last week of July.

In gasoline, the EIA reported an increase in inventories of 419,000 barrels, after a 700,000-barrel build estimated for the previous week. Gasoline production last week averaged 9.3 million bpd, compared with 9.2 million bpd a week earlier.

In distillate fuels, the authority estimated an inventory increase of 1.6 million barrels for the week to July 31. This compared with a build of half a million barrels a week earlier. Production of distillates last week averaged 4.9 million bpd, compared with 4.8 million bpd a week earlier.

Prices jumped after the API inventory report on Tuesday, even though worries about the sustainability of any demand improvement remain strong. The rally continued today, too. At the time of writing, West Texas Intermediate was trading at $43.25 a barrel, with Brent crude changing hands at $45.94 a barrel, both up by more than 3 percent.

Earlier this week, the International Monetary Fund said it expected crude oil demand to record an 8-percent decline this year. As a result, prices will be 41 percent lower than they were last year on average, the IMF said in a report titled ‘Global imbalances and the COVID-19 crisis’.

The IEA meanwhile, updated its oil demand forecast and now expects demand to suffer a 7.9-million-bpd decline this year. This compares with expectations of an 8.9-million-bpd demand contraction by OPEC.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Fred Gosling on August 06 2020 said:
    BS: After the release,Sept. futures went from $43.50+- to settle at $42.19. In the EIA report, the draw of 7.4MB does not check out:
    Production + net imports - refinery draws = crude change.
    Production = -100K bbls/day
    Net Imports = +1,256K bbls/day
    Refinery Draws(per the Summary) only 42K bbls/day more
    There should not have been a crude draw!!!

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News