• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 1 min TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 6 hours Dr. Fauci is over rated.
  • 4 hours Where's the storage?
  • 9 hours China extracts record amount of natural gas from Gas Hydrates in South China Sea
  • 4 mins Saudi Arabia Can't Endure $30 Oil For Long
  • 6 mins America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 1 hour Hillary Clinton tweeted a sick Covid joke just to attack Trump
  • 33 mins Oxford Epidemiologist: Here’s Why That Covid-19 Doomsday Model Is Likely Way Off
  • 12 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 1 day Dept of Energy ditches plans to buy Crude Oil for SPR
  • 1 day Wastewater Infrastructure Needs
Alt Text

S&P Cuts Oil Nations Ratings

Several oil-producing nations woke up…

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 Rebound On Crude Inventory Draw

A day after the American Petroleum Institute’s crude oil inventory report put a restraint on oil prices, the Energy Information Administration pushed prices up again by reporting a draw of 1.4 million barrels for the week to May 11.

This follows a combined inventory build of 8.4 million barrels in the prior two weeks. Analysts had expected a modest inventory build of 90,000 barrels.

The EIA said refineries processed 16.6 million barrels of crude daily, with gasoline production averaging 10.5 million barrels, compared with 9.9 million bpd a week earlier. Distillate production stood at 5.0 million barrels daily last week, unchanged on the week.

Gasoline inventories were down by 3.8 million barrels last week, after a total 2-million-barrel build in the prior 14 days. Distillate inventories decreased by 0.1 million barrels, after a combined 7.7-million-barrel draw over the prior two weeks.

This week’s API report seems to have served as a wake-up call for traders after lots of upbeat media reports about strong crude oil demand, helped by EIA’s latest drilling productivity report, which estimated that shale oil production in the Lower 48 would jump by a record 144,000 bpd this month, to 7.178 million bpd.

EIA’s latest weekly petroleum report will certainly fuel the bullish sentiment on the oil market even though some analysts are noting that financial demand for crude oil greatly exceeds physical demand, with spot oil prices at the deepest discount to futures in years. Related: Could This Be The Next Proxy War In The Middle East?

Still, even more cautious analysts admit that the OPEC+ production cut deal has served its purpose and global oil supply is a lot tighter than it was just two years ago. This has supported a 70-percent price rise in Brent over the past 12 months, and the benchmark could rise further as OPEC keeps on the same course.

Meanwhile, U.S. and Canadian crude is trading at substantial discount due to pipeline capacity shortage that is making it difficult for crude from the Permian and Alberta to reach refineries.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Mamdouh G Salameh on May 16 2018 said:
    To give a pretence of reality in its reporting, the US Energy Information Administration (EIA) reported a draw of 1.4 million barrels for the week to May 11. But just wait for 2-3 days, and we will get another report of a few million barrels build in both US crude and gasoline inventories.

    Reporting by API and the EIA has become so farcical with a blatant intension to manipulate oil prices. But the global oil market has already seen through their ploys so that it did not take oil prices long to resume their surge upwards.

    The OPEC/non-OPEC production cut agreement has indeed done a sterling job in eliminating the huge glut in the global oil market. Still, the agreement is here to stay well into the future and it will be transformed into a permanent mechanism which can react quickly to any extreme tightening in the global oil market or any significant build in global crude oil and gasoline inventories.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • D R Pearson on May 16 2018 said:
    "This follows a combined inventory build of 8.4 million barrels in the prior two weeks."

    This needs to be corrected. In the prior 2 weeks there was a 2.2 mmbo draw (last week), and a 6.2 mmbo add (in the previous week). There was only a combined inventory build of 6.2 million barrels in the prior two weeks. Regards.

Leave a comment




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