X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 3 hours U.S. Presidential Elections Status - Electoral Votes
  • 2 hours Texas Supply Chain Massacre
  • 1 day Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 14 mins America Makes Plans to Produce Needed Rare Earth Minerals Domestically
  • 17 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 11 hours Speaker Pelosi, "Tear Down This Wall" . . around Capital Building
  • 3 days Retired RAF pilot wins legal challenge over a wind farm
Is The Caribbean Ready For An Oil Boom?

Is The Caribbean Ready For An Oil Boom?

The Caribbean is shaping up…

Suriname Looks To Ramp Up Oil Production In A Big Way

Suriname Looks To Ramp Up Oil Production In A Big Way

Looking to replicate neighboring Guyana’s…

Russian Oil Giant Rosneft Sees Profits Slide 79% In 2020

Russian Oil Giant Rosneft Sees Profits Slide 79% In 2020

Rosneft reported a 79-percent drop…

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 Jump On Surprise Crude Inventory Draw

Crude oil prices rose today after the Energy Information Administration reported a crude oil inventory decline of 700,000 barrels for the week to May 8.

This compared with a build of 4.6 million barrels for the previous week. The American Petroleum Institute yesterday reported an estimated 7.58-million-barrel inventory increase for the week to May 8.

In gasoline, the EIA reported an inventory draw of 3.5 million barrels, after a draw of 3.2 million for the previous week, which sparked hopes for demand recovery. Gasoline production last week averaged 7.5 million bpd, versus 6.7 million bpd a week earlier.

In distillate fuels, the EIA reported an inventory rise of 3.5 million barrels for last week. A week earlier, distillate fuel inventories had added 9.5 million barrels, with production at 5.1 million bpd. Last week, distillate fuel production averaged 4.9 million bpd.

Refineries processed 12.4 million barrels of crude daily last week, the EIA also said, operating at 67.9 percent of capacity. This compared with average daily run rates of 13 million barrels of crude, with refineries operating at a little over 70 percent of capacity.

This week saw a host of European countries begin reopening their economies, which had a beneficial effect on oil prices. However, the effect may be short-lived until it becomes clear exactly how fast the recovery in demand is going. U.S. oil prices also benefited from Saudi Arabia’s announcement it would deepen its oil cuts by another 1 million bpd.

At the time of writing, West Texas Intermediate was trading at $25.42 a barrel, with Brent crude at $29.83 a barrel, both slightly down from yesterday. Meanwhile, some U.S. producers have said they would start ramping up production at $25 for a barrel of WTI despite the fact that the huge global inventory overhang remains. If they stick to their word, the problem will only become graver and will pressure prices yet again, putting much of the U.S. oil industry in a vicious circle.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • James Skora on May 13 2020 said:
    This is why oil should be taken.off the markets. It spikes while everyone knows we're swimming in the stuff

Leave a comment




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