• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 8 mins Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 29 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 39 mins Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 12 hours Let's shut down dissent like The Conversation in Australia
  • 6 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 18 hours Hong Kong protesters appeal to Trump for support.
  • 11 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 8 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 18 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 8 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 3 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 11 hours Iran in the world market
Alt Text

Iran Has Perfected The Art Of Hiding Its Oil Tankers

Despite sanctions and mounting geopolitical…

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
Download on the App Store Get it on Google Play