• 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
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days They pay YOU to TAKE Natural Gas
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 2 days What fool thought this was a good idea...
  • 4 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 7 hours A question...
  • 11 days The United States produced more crude oil than any nation, at any time.
High Oil Prices Force Biden Admin to Halt SPR Refill Plans

High Oil Prices Force Biden Admin to Halt SPR Refill Plans

The Biden administration has canceled…

Asian Refiners Diversify Away from Middle Eastern Oil

Asian Refiners Diversify Away from Middle Eastern Oil

Asian refiners are reducing their…

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 Fall On Bearish EIA Data

Cushing

The Energy Information poured cold water on oil bull circles this week when it reported a crude oil inventory increase of 7.9 million barrels for the week to May 22. Fuel inventories posted mixed results, with gasoline down and distillate fuels up.

This compares with an inventory draw of 5 million barrels a week earlier and analyst expectations for a draw of 2.5 million barrels.

The EIA reported a modest draw in gasoline inventories, at 700,000 barrels, which compared with a build of 2.8 million barrels a week earlier. Gasoline production, the EIA said, averaged 7.2 million bpd last week, slightly up from the previous week.

In distillate fuels, the EIA reported an inventory increase of 5.5 million barrels for the week to May 22, after a sizeable build of 3.8 million barrels for the previous week. This, in turn, followed a weekly inventory build of 3.5 million barrels. Distillate fuel production last week averaged 4.8 million bpd, almost unchanged on a week earlier.

U.S. refineries processed an average 13 million bpd last week, slightly more than the previous week. This compared with 12.9 million bpd a week earlier, signaling the accelerating, but still slow recovery in oil demand in the world’s largest consumer as states reopen and economic activity begins to recover, too.

There are many doubts about how long it would take for the U.S. economy—and other large economies—to rebound to pre-pandemic levels and there is also a big question about oil demand. In fact, even some industry executives don’t see that rebounding fully to pre-crisis levels. However, for now, any positive news about oil consumption would have an immediate effect on a market starved of good news for weeks.

At the time of writing, West Texas Intermediate was trading at $32.85 a barrel with Brent crude at $34.66, both down after Wednesday reports that Russia may be considering easing its production cuts from July. The current OPEC+ production cuts stand at 9.7 million bpd, to be in effect until the end of June. There have also been reports the group may discuss extending them beyond that expiry date.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • rudolf d'Ecofacista on May 28 2020 said:
    Imports were 2 million barrels a day per day higher.

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