• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes The Inconvenient Truth Of Electric Cars
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 2 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 1 hour Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 4 hours Wonders of Shale - Gas, bringing investments and jobs to the US
  • 2 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 10 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 2 hours The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 5 hours The Plastics Problem
  • 7 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 8 hours Cherry Picking Climate Data
  • 1 hour Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 12 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 4 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 6 hours Coal Boom in Asia is Real and a Long Trend
Alt Text

This Overlooked Canadian Oil Niche Is Making Traders Billions

As major pipeline bottlenecks continue…

Alt Text

China’s Risky Move To Boost Domestic Oil Production

China’s increasing foreign oil imports…

Alt Text

Canada’s Oil Patch Faces Investor Exodus

Capital investment across Canada’s oil…

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

Oil Prices Extremely Volatile After Massive Crude Build

The Energy Information Administration tipped markets towards bear territory when it reported that U.S. crude oil inventories had jumped by 4.9 million barrels in the week to October 7. The total of 474 million barrels remains higher than the average for this time of year.

Yesterday, the American Petroleum Institute was the first to spread oil doom and gloom by estimating that crude inventories had gone up by 2.7 million barrels in the same week. This immediately weighed on international oil prices, as it came amid a temporary pause to the news flow about OPEC and Russia’s freeze plans. It also suggested that inventories may be building for the first time in the last six weeks.

Analysts polled by media had expected an increase of 2 million barrels in crude oil stockpiles, along with a 900,000-barrel decline in gasoline inventories. Last week, the EIA reported a 3-million-barrel draw after API estimated a draw of 7.6 million barrels the day prior.

According to the EIA, gasoline inventories last week fell by 1.9 million barrels, with refineries producing an average 9.9 million barrels a day. The rate of crude oil processing stood at 15.6 million barrels, down 480,000 bpd from the previous week, with the facilities operating at 85.5 percent of available capacity.

The EIA’s latest report will push downward already volatile international prices, especially after the excitement started to wane about Russia joining the OPEC freeze after temporarily pushing Brent above US$53 a barrel.

Markets are more than likely to remain excessively volatile until the end of November, when OPEC will meet to make a final decision on the output cap.

At the time of writing, Brent crude was trading down 1.29% at US$51.14 a barrel, while West Texas Intermediate traded down 1.3% at US$49.53 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
  • Kr55 on October 13 2016 said:
    Or to put it another way. What should have been an expected crude build in the middle of maintenance season with refinery operations interrupted, and excellent product draws, lower-48 production falling again and Cushing stocks at lowest level in 2016 sees oil stay over $50. :)
  • doogie on October 13 2016 said:
    But crude prices are up!
    Other than that your post is well thought out.
  • Chuckie on October 13 2016 said:
    The 5-year average inventory build for this week is 3.7M, so I don't know if I would call it a "Huge" build relatively speaking as mentioned in the headline. Plus, total inventories including finished stocks actually fell by 5M barrels due to high demand for gas and distillates. The crude build is directly attributed to refinery maintenance which is temporary. So I don't see how this report is bearish.
  • GregSS on October 13 2016 said:
    A swing of 2.7 million barrels is now called massive? So what would we call past moves of 5 or even 10 million barrels?
  • Rondo on October 13 2016 said:
    Anyone understand why Crude Stocks (exc SPR) for 9/30/16 show 499.7 mmbo on the Oct 5 report and 469.1 mmbo on the Oct 13 report resulting in a 4.7 mmbo build to 474.0 mmbo for 10/7/16? IF the change was from 499.7 to 474.0, that's more interesting.

    http://www.eia.gov/petroleum/supply/weekly/archive/2016/2016_10_05/pdf/highlights.pdf

    http://www.eia.gov/petroleum/supply/weekly/archive/2016/2016_10_13/pdf/highlights.pdf
  • JHam on October 14 2016 said:
    Hey Rondo,
    The numbers are now presented without lease stocks, approx 30-33 mill barrels but stays pretty steady so EIA now doesn't include it. Hope this helps.

    http://www.eia.gov/todayinenergy/detail.php?id=28292

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News