• 1 day Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 3 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 5 hours GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 24 mins Clean Energy Is Canceling Gas Plants
  • 47 mins Rethinking election outcomes for oil.
  • 1 day America's Frontline Doctors - Safely Start Living Again!
  • 54 mins The Leslie Stahl/60 Minutes Interview with President Trump
  • 5 hours OP article : "Trump blasts Biden Fracking Plan . . . "
  • 7 hours Biden denies fracking ban
  • 3 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 1 day Is the coal industry on the way out?
  • 2 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 2 days Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
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 Oil Inventory Draw Fails To Move Market

The Energy Information Administration reported a crude oil inventory decline of 2.7 million barrels for the week to January 11 but the report failed to have any palpable effect on oil prices. Inventories are about 8 percent above the five-year average for the season.

Yesterday, the American Petroleum Institute had reported an uncharacteristically modest estimated inventory draw of 560,000 barrels for last week.

The EIA said refineries in the U.S. had processed an average 17.2 million barrels of crude daily in the seven days to January 11, producing 9.6 million bpd of gasoline and 5.4 million bpd of distillate fuel. This compares with an average processing rate of 17.6 million bpd a week earlier, and gasoline production of 9.4 million bpd, with distillate fuel production at 5.6 million bpd.

Gasoline inventories, the EIA said, added a whopping 7.5 million bpd last week, with distillate fuel inventories rising by 3 million barrels.

This week’s inventory report comes on the heels of EIA’s latest Short-Term Energy Outlook, which is the first that covers not just this year but also 2020. In both these years, the United States will increasingly become a major force to reckon with in oil. Last year, the EIA said, crude oil production in the country rose by as much as 2.2 million bpd and the rise will continue this year and next. Related: Russia Looks To Build ‘LNG Island’ To Supply Booming Asian Market

This year, the EIA expects U.S. production to grow by 1.7 million bpd, with the rise slowing down further in 2020 to 1.2 million bpd. This growing production will continue to shrink imports, from 2.4 million bpd last year to 1.1 million bpd this year and to less than 100,000 bpd in 2020. At the end of 2020, the EIA expects the U.S. to become a net exporter of crude oil.

Meanwhile, prices remain around US$50 for West Texas Intermediate and US$60 for Brent crude as OPEC+ begin cutting production but worries about the global economy persist.

At the time of writing, WTI was trading at US$52.20 a barrel, with Brent crude at US$60.85 a barrel.

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