• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 3 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 31 mins In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 16 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 3 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 4 hours Continental Resource's Hamm (Trump Buddy) wants shale to cut production.Can't compete with peers. Stock will drop in half again.
  • 15 hours US Petroleum Demand Strongest Since 2007
  • 15 hours Movie Script: Epstein Guards Suspected Of Falsifying Logs
  • 1 hour Will Uncle Sam Step Up and Cut Production
  • 1 day NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 2 days Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 2 days Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 52 days To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 4 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
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 Leap Higher After Draw In Crude Inventories

The Energy Information Administration offered jittery oil markets respite today by reporting a draw of 4.7 million barrels in U.S. commercial oil inventories. The report comes just one day after the American Petroleum Institute reported a build in inventories, estimated at 1.628 million barrels, versus expectations of a draw of 3 million barrels.

Also yesterday, Ecuador announced its plans to abandon OPEC’s production cut deal and boost production to shore up its finances. The news dropped like a stone in a calming lake, as market participants and observers sat in wait for the next meeting of OPEC and Russian energy ministers next week that some hope will result in an announcement of deeper production cuts. Now that Ecuador has quit the game, OPEC’s position has become more precarious, as more members might choose to follow Ecuador’s example—a move that could put an end to the deal.

The EIA reported hefty draws in inventories in the last two weeks, and this week’s figure should go towards instilling some stability in a once again nervous market.

At 490.6 million barrels, commercial inventories in the world’s largest oil consumer are within seasonal limits, which wasn’t the case six months ago. This can most easily be attributed to higher refinery runs during summer driving season, which suggest that later this year, we could see a rebound in inventories—but for now at least, the news is good.

Refinery runs last week averaged 17.1 million bpd, down from 17.2 million bpd in the prior week, producing 10.1 million bpd of gasoline. This compares with 10.5 million bpd in the week before. Gasoline inventory figures added to the optimism: these were down by 4.4 million barrels after a 1.6-million-barrel draw during the week to July 7.

(Click to enlarge)

WTI oil reacted directly after the EIA data release and was up nearly 1.5% at 09:40 AM CST, while Brent crude prices rose 1.52% to $49.58.

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