• 4 minutes Will Libya Ever Recover?
  • 9 minutes USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 13 minutes What Can Bring Oil Down to $20?
  • 16 minutes Venezuela continues to sink in misery
  • 20 hours Alberta govt to construct another WCS processing refinery
  • 7 hours Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 hours Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 11 hours Instead Of A Withdrawal, An Initiative: Iran Hopes To Agree With Russia And Turkey on Syrian Constitution Forum
  • 22 hours Let's Just Block the Sun, Shall We?
  • 12 hours Water. The new oil?
  • 8 hours Storage will in time change the landscape for electricity
  • 2 days Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 2 days U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 days OPEC Cuts Deep to Save Cartel
  • 11 hours Regular Gas dropped to $2.21 per gallon today
  • 2 days Global Economy-Bad Days Are coming
Alt Text

Chevron Bets Big On Supergiant Oil Field

U.S. supermajor Chevron continues to…

Alt Text

IEA: OPEC+ Has Put “A Floor Under Prices”

The IEA thinks that OPEC…

Alt Text

Permian Oil Reserves May Be Twice As Big As We Thought

The U.S. Geological Survey has…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Crude Inventory Draw Offers Sliver Of Hope For Oil Markets

With WTI slipping into a bear market, global floating oil storage at a record high for this year, and Libya getting closer to its target of 1 million barrels of oil daily, things can hardly get any worse for oil prices. The EIA today, however, offered a tiny sliver of hope by reporting a 2.5-million-barrel draw in crude oil inventories.

A day earlier, the American Petroleum Institute’s weekly inventory estimate pegged oil inventories at 2.72 million barrels less than the week before, which could have cheered up markets in other circumstances, but not this time.

WTI, which has since the start of the year lost 20 percent, now might get a short respite thanks to EIA’s figures. At the time of writing, it traded at US$43.62 per barrel, with Brent crude at US$46.01 a barrel. On Tuesday, WTI settled at the lowest level since last August, at US$43.23 a barrel.

The EIA reported total crude inventories stood at 509.1 million barrels at the end of last week, with imports at 7.9 million barrels. Refinery rates averaged 17.2 million bpd, with plants operating at 94 percent of capacity. Related: Is $40 Oil On The Horizon?

Gasoline production averaged 10.2 million barrels per day last week, and inventories of the most popular fuel, despite the API yesterday reporting a build, declined by 600,000 barrels, still remaining above the upper limit of the seasonal average, however. So far, driving season has failed to live up to expectations of stockpile draws, just like OPEC’s extended production cut agreement.

The active rig count in the U.S. increased last week for the 22nd week in a row, reinforcing expectations that U.S. crude oil output will continue to stave off OPEC cuts, plunging international prices deeper, but, at least according to Barclays, this is unlikely. In a note to investors, the bank said that the keep the rig count above 900, U.S. producers would have to spend 70 percent more and the costs per well would have to decline – both very unlikely.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Tony on June 21 2017 said:
    4th of July is on a Tuesday this year instead of a three day weekend. Driving season is pretty much over. We'll see oil in the low $30s by end of July.

Leave a comment




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