• 3 minutes Electric cars may make driving too expensive for middle classes, warns Vauxhall chief
  • 6 minutes Natural gas mobility for heavy duty trucks
  • 12 minutes Colonial pipeline hack
  • 18 mins U.S. Presidential Elections Status - Electoral Votes
  • 7 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 hour Texas Power Outage Danger Until June 18th. Texans told to conserve energy!
  • 5 hours Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 1 day Federal Judge Says Biden Probably Wrong for Halting Drilling on Federal Land
  • 2 days And now, hybrid electric locomotives...
China’s Efforts To Curb Oil Prices Are Futile

China’s Efforts To Curb Oil Prices Are Futile

Chinese authorities have implemented a…

Oil Prices Fall Following Large Fuel Inventory Build

Oil Prices Fall Following Large Fuel Inventory Build

Crude oil prices fell slightly…

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

EIA Inventory Report Sends Oil Higher

Crude oil inventories in the United States shed 5.1 million barrels in the week to May 28, the Energy Information Administration reported today, adding inventories were now at 3 percent below the five-year average for this time of the year.

A day earlier, the American Petroleum Institute estimated crude oil inventories had declined by a solid 5.36 million barrels in the reporting period, pushing prices higher.

Analysts had expected the EIA to report an inventory decline of 2.114 million barrels.

In gasoline, the EIA estimated an inventory build of 1.5 million barrels for the week to May 28, compared with a draw of 1.7 million barrels for the previous week. Gasoline production last week averaged 9.6 million bpd, which compared with 9.7 million bpd a week earlier.

In middle distillates, the EIA reported an inventory increase of 3.7 million barrels, with average production at 4.8 million bpd. This compared with a stock draw of 3 million barrels a week earlier and average daily production of 4.7 million bpd.

EIA’s report will likely add fuel to an already strong price rally prompted by improving demand despite flare-ups of Covid-19 in Asia as economies in Europe and the United States begin to return to normal.

OPEC+ was the latest to signal strong optimism regarding demand as it confirmed it would stick to plans to relax production cuts further from next month. At the same time, the cartel brushed off the possibility for some 2 million bpd of Iranian crude to return to international markets before too long, suggesting its outlook for demand was strong enough.

Brent crude breached the $70 mark earlier this week and was above it at the time of writing still, trading at $71.56 a barrel. West Texas Intermediate was changing hands at $69.04 a barrel.

A lot of U.S. economic data is coming out later today from the Institute of Supply Management, and if it misses expectations, some of that data could dampen the rally for a while until the return of travel takes the upper hand again as the main factor for oil demand improvement.

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




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