• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 1 hour America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 23 mins Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 7 hours Saudi Arabia Can't Endure $30 Oil For Long
  • 3 hours KSA taking Missiles from ?
  • 5 hours Where's the storage?
  • 8 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 5 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 5 hours Hillary Clinton tweeted a sick Covid joke just to attack Trump
  • 8 hours China extracts record amount of natural gas from Gas Hydrates in South China Sea
  • 9 hours Wait till America opens their Q1 401k Investment Statements and see they have lost 35% of their retirement savings. They can blame the Authoritarian Chinese Communist Party..
  • 10 hours There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 12 hours Oxford Epidemiologist: Here’s Why That Covid-19 Doomsday Model Is Likely Way Off
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 Reports Major Draw In Crude Inventories

Amid rising oil prices thanks to the three-week suspension of the Forties pipeline and a major inventory draw estimated by API, the Energy Information Administration injected some more optimism in markets with a reported draw of 5.1 million barrels of crude.

The authority said that at 443 million barrels, inventories of crude oil were in the middle of the seasonal average. Refineries processed 17 million barrels of crude daily last week, the EIA also said, producing 10.1 million barrels of gasoline, up from 9.8 million bpd last week.

Gasoline inventories, which last week pushed prices down after API estimated a massive build—that EIA largely confirmed—this week will probably have the same effect: according to EIA, they rose again, by 5.7 million barrels

In addition to the inventory draw, WTI is at the moment benefiting from greater demand for U.S. oil from Asia, following the shutdown of the Forties oil pipeline network in the North Sea, which has taken off more than 400,000 bpd of crude from the market.

The shutdown—following the discovery of cracks in parts of the infrastructure—caused Brent crude to temporarily jump above US$65 a barrel and after that continued to trade closer to that than to US$60.

This development will naturally increase the appeal of alternatives to Brent-linked oil grades, including U.S. and Russian crude as the spread between the benchmarks widens. The ICE Brent/WTI spread on Monday, for example, after the announcement of the Forties shutdown, widened to over US$6.60 a barrel from less than US$5 last week.

Meanwhile, the OPEC camp is quietly discussing its exit strategy from the production cut agreement, likely spurred by Russia’s insistence to have one in place soon, so it can leave the deal at the first opportunity. The strategy will be announced at the June meeting of the Vienna Club. Until then, it will be among the most important factors to watch out for in the oil market.

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