• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 12 hours Reality catching up with EV forecasts
  • 8 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 8 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 14 days The Federal Reserve and Money...Aspects which are not widely known

Breaking News:

EU Supports $100 Russian Diesel Price Cap

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

Minor Crude Inventory Draw Gives Bulls Glimmer Of Hope

Today, the Energy Information Administration gave oil bulls a glimmer of hope by reporting a draw in inventories of 1.7 million barrels for the week to June 9.

The possibility of oil prices going into free fall is looking increasingly believable as OPEC struggles to convince market players that the cuts they extended at the end of last month are having an impact on global inventories amid rising U.S. shale production.

Yesterday, the API crushed bulls by estimating commercial stockpiles of crude had risen by 2.75 million barrels, contrary to analyst expectations of a 2.7-million-barrel draw. Last week the industry body reported a major decrease in inventories, at 4.62 million barrels, only to see the figures refuted by the EIA, which said inventories had actually climbed by 3.3 million barrels in the week to June 2.

ADVERTISEMENT

Now, the EIA said, total inventories were 511.5 million barrels, in the upper half of the seasonal average, which could be seen as a cause for optimism after several months of inventories exceeding the seasonal maximum. Then again, this detail may be ignored in the context of rising shale output, Iraqi export capacity expansion, and growing output in Libya and Nigeria.

Earlier this week, Nigeria’s petroleum minister urged the U.S. and other non-OPEC producers to join the output reduction efforts, but the chances of this happening are slim, with a growing feeling among observers that OPEC needs to cut deeper to make a difference.

ADVERTISEMENT

The EIA reported refinery runs of 17.3 million barrels daily last week, with gasoline output at 9.8 million barrels daily, down slightly from 9.9 million bpd in the week before. Gasoline inventories increased by 2.1 million barrels.

Imports averaged 8 million barrels in the week to June 9, versus 8.3 million bpd in the previous week. Next month should see a palpable reduction in imports if Riyadh stays true to its word to cut exports to one of its biggest clients by more than a third, unless offset by Iraq.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



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