• 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
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days China's aggression is changing the nature of sovereignty.
  • 4 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 1 day Ukrainian Maidan after 8 years
  • 3 days OPEC+ Expects Large Oil Glut In Early 2022
  • 2 days Delta variant in European Union
  • 2 days Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 9 hours Communist China Declared War on the US Long Ago Part 1 of the 2-part series: The CCP's War on America
  • 3 days Forecasts for Natural Gas
  • 3 days Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 12 mins President Biden’s Nuclear Option Against OPEC+ - Waste of Time
  • 13 hours Сryptocurrency predictions
  • 2 days NordStream2
  • 2 days CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 3 days Big Bounce: Russian gas amid market tightness - new report by Oxford Institute for Energy Studies
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 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:


Download The Free Oilprice App Today

Back to homepage





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




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