• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 6 minutes Pompeo upsets China; oil & gas prices to fall
  • 11 minutes The Secret China Iran Oil Deal At The Heart Of One Belt One Road Project
  • 4 hours Trump Hands Putin Major Geopolitical Victory
  • 10 hours Trump Suggests Delaying Election Amid Fraud Claims
  • 9 hours Rational analysis of CV19 from Harvard Medical School
  • 6 hours While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 4 hours End Game For Oil? OPEC Prepares For An Age Of Dwindling Demand
  • 3 days The World is Facing a Solar Panel Waste Problem
  • 1 day "The Great Reset" What does this mean for you.
  • 1 day Mask Disposal
  • 1 day You may all go to hell
  • 1 day Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 12 hours What happens to oil and gas production when 1/2 of Oklahoma is handed over to the Tribes
  • 2 days Is The Three Gorges Dam on the Brink of Collapse?
  • 3 days Trump is turning USA into a 3rd world dictatorship
Oil Buyers Profit From A Wave Of Cheap Fuel

Oil Buyers Profit From A Wave Of Cheap Fuel

Hedge funds and institutional oil…

Jet Fuel Crisis Will Hurt Oil Demand For Years To Come

Jet Fuel Crisis Will Hurt Oil Demand For Years To Come

The aviation industry has been…

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