• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 10 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 9 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 10 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Ecopetrol, Guerillas and Death Squads: The War for Colombia’s Oil

Ecopetrol, Guerillas and Death Squads: The War for Colombia’s Oil

Colombia’s national oil company, Ecopetrol,…

Megamerger Mania Set To Shake Up Latin America’s Oil and Gas Industry

Megamerger Mania Set To Shake Up Latin America’s Oil and Gas Industry

Enauta's strategic acquisitions and proposed…

OPEC+ Rules in an Increasingly Tight Oil Market

OPEC+ Rules in an Increasingly Tight Oil Market

The market is growing increasingly…

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 Takes Markets By Surprise, Reports Major Crude Oil Inventory Draw

bakken flaring

Amid growing pessimism regarding an extension of OPEC’s oil production deal, and a day after the American Petroleum Institute reported an estimated increase of 897,000 barrels in U.S. commercial inventories, the EIA reversed the mood with a draw of 3.6 million barrels for the week to April 21.

Analysts had expected a respite for oil prices with a decline in inventories of 1.6 million barrels and though they were out of luck with API, EIA exceeded the expectations.

The EIA reported that crude inventories stood at 528.7 million barrels at the end of last week, still near the upper seasonal limit despite refineries increasing their runs after the end of maintenance season, which some analysts argued was the reason for the hefty weekly inventory increases that we saw over the last couple of months.

They may well have been right, as refinery runs averaged 17.3 million barrels in the week to April 21, up 347,000 bpd on the previous week, with refineries operating at 94.1 percent of capacity. Gasoline production averaged 9.7 million barrels, compared with 9.8 million barrels in the previous week.

Gasoline inventories increased by 3.4 million barrels and are still near the upper limit for this time of year, and distillates increased 2.7 million barrels.

Oil prices have been hovering around four-week lows in the past week, pressured by the global inventory situation and wilting hopes that an OPEC extension would this time do the trick and take care of the excess supply.

Still, yesterday Brent and WTI picked up a little on analyst expectations that the API would report a draw in U.S. inventories, but that came after six straight sessions in the red for the benchmarks. Now, EIA’s figures are bound to provide a boost for benchmarks.

source: oilprice.com/oil-prices

Even so, analysts seem to share the opinion that the first OPEC deal was a failure, despite the high compliance rate. The cartel and its external partners will have to cut deeper and for longer if they are to influence oil prices in any meaningful way.

Amid all this, Russian government officials have been reported to suggest that the country’s oil production could hit the highest in 30 years in 2017, if OPEC does not agree to extend the cuts, adding to headwinds for oil prices.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Bud on April 26 2017 said:
    Total oil stocks were up near double at 6.6 million barrels due to increase in imports and gasoline inventory.

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