• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 2 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 18 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 2 days Indonesia Stands Up to China. Will Japan Help?
  • 1 day US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 15 mins Let’s take a Historical walk around the Rig
  • 17 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 hour Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 hours Trump has changed into a World Leader
  • 1 day Might be Time for NG Producers to Find New Career
  • 2 days Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 2 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 3 days Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
Alt Text

Expect A Strong Year For Oil Discoveries

Despite the kickback from the…

Alt Text

The Latest Texas Oil Boom Has Sent Emissions Soaring

The ongoing growth of fracking…

Alt Text

Oil Prices Head Lower Despite Small Crude Draw

Oil prices continued to trade…

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 Heads Lower On Small Inventory Build

A day after the American Petroleum Institute disappointed oil bulls by reporting an estimated inventory build across the board, the Energy Information Administration deepened the mood by saying U.S. crude oil inventories added 1.3 million barrels in the week to February 1.

At 447.2 million barrels, the EIA said, U.S. crude oil inventories are still above the seasonal average but not by much.

In gasoline, the authority reported a build of 500,000 barrels, with daily production at a little less than 9.9 million barrels. A week earlier, gasoline inventories fell by 2.2 million barrels after four weekly builds, and hefty ones, at that, with production averaging 9.9 million bpd.

Distillate fuel inventories last week shed 2.3 million barrels and production averaged 5.1 million barrels per day. A week earlier, inventories recorded a 1.1-million-barrel decline and production averaged 5 million bpd.

Crude oil prices in the meantime remain volatile although not as volatile as some expected after the announcement of the latest round of sanctions by Washington against Caracas. The worry was that the sanctions, targeting specifically PDVSA, will result in a shortage of heavy crude for U.S. refineries on the Gulf Coast, but in actuality, there seems to be sufficient spare production capacity around the world to fill any supply gap resulting from the latest developments in and around Venezuela.

It will take time for the market to factor in this fact and for now the concern about a shortage is being offset by the production cuts OPEC and Russia agreed at the end last year.

EIA’s report tends to have more influence on prices, but any effect will likely be temporary, as seen with earlier weekly inventory reports. All in all, many analysts expect the heightened oil price volatility we have been witnessing for a few months now to remain throughout 2019.

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
Download on the App Store Get it on Google Play