• 3 minutes CoV-19: China, WHO, myth vs fact
  • 6 minutes Trump reinvented tariffs and it worked
  • 9 minutes IEA Sees First Global Oil Demand Drop in a Decade on Coronavirus
  • 12 minutes Question: Why are oil futures so low through 2020?
  • 2 days "For the Public's Interest"
  • 51 mins Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 4 hours Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 20 hours Natural Gas from Cow Poop Used to Save the Environment and Help Farmers
  • 1 day Coronovairus, Phase One Agreement, Lower for Longer
  • 4 hours The New Class War Exposes the Oligarchs and Enablers
  • 4 hours Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 15 hours Has Trump put the USA at the service of Israel?
  • 18 hours Is cheaper plastics feedstock on the horizon?
  • 1 day Weekly U.S. Imports of Crude Oil. No, the U.S. is NOT oil & gas self-sufficient.
  • 12 hours Solar Cells at 25 Cents Apiece (5 cents per watt)
  • 2 days Cheap natural gas is making it very hard to go green
Alt Text

Reinstating An Oil Export Ban Would Be A Disaster For The U.S.

Liberal presidential candidates are calling…

Alt Text

A Third Of Fossil Fuel Assets May Soon Be Stranded

According to estimates in the…

Alt Text

The $2 Trillion Threat To Middle East Oil

The global drive to mitigate…

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

Crude Inventory Build Sends Oil Prices Into A Nosedive

Amid growing worry about the direction that oil prices are heading into, the Energy Information Administration reported a 5-million-barrel build in U.S. commercial oil inventories for last week, bringing total US crude oil inventories to 533.1 million barrels.

The report comes a day after API’s latest estimate dealt yet another blow to prices, pegging inventories at 4.53 million barrels more than a week before.

Last week’s EIA figures were also discouraging: for the seven days to March 10 the authority reported a modest decline of 200,000 barrels, reinforcing concern that the glut will continue despite some cuts in production made by OPEC and 11 non-OPEC producers.

In its latest report, the EIA also reported a draw in gasoline inventories of 2.8 million barrels, with refinery processing rates averaging 15.8 million barrels of crude daily. Gasoline production was up to 9.8 million barrels in the period.

U.S. inventories have seen major builds over the last few months, contributing substantially to a dampening of optimism for the immediate future of oil prices. The latest news from the OPEC camp as well as a recent note to investors from Goldman Sachs is painting a gloomy picture.

While some OPEC members are on board with a production cut extension, Saudi Arabia early this month declared it will not partake in measures that will only support U.S. shale producers’ ramping up of production. It later softened its stance, so the prospects of an extension look brighter. Related: Why Shell’s Oil Sands Sell Off Is Great News For Canadian Oil

Goldman Sachs warns that mega projects expected to start commercial production this year could add a million barrels to global supply, erasing any gains made thanks to the OPEC cut, extended or not. The extension dilemma is indeed a tough one: OPEC can either agree to extend the cuts and risk losing more market share, or start raising production from July 1, bringing prices further down.

Meanwhile, U.S. producers are facing pressure from banks: if WTI falls to $45, lenders are more likely than not to start cutting credit lines, hampering the industry’s recovery.

Amid these developments, at the time of writing Brent crude was trading at $50.16 a barrel and WTI was at $47.63.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News