• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 3 mins Is Eating Meat Worse Than Burning Oil?
  • 30 mins Diplomatic immunity
  • 6 hours Canada Election Deadlock?
  • 7 hours China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 18 hours Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 1 day Here's your favourite girl, Tom!
  • 1 day Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 6 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 5 hours Devaluing the Yuan
  • 1 day IMO 2020:
  • 17 hours Nigeria Demands $62B from Oil Majors
  • 2 days Deepwater GOM Project Claims Industry First
  • 15 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
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 Rise As EIA Confirms Strong Draw To Crude Inventories

A day after the American Petroleum Institute played the fairy godmother to oil bulls by reporting a huge draw in U.S. crude inventories, the EIA reinforced the mood by confirming a significant build in inventories.

According to the authority, U.S. commercial crude oil inventories fell by 6.4 million barrels in the week to May 26, to a total of 509.9 million barrels—still in the upper half of seasonal limits but not exceeding the top end anymore, after a second weekly draw.

U.S. inventories have expanded by 24 million barrels overall in 2017, according to EIA data.

The EIA reported refinery runs of 17.5 million bpd, operating at 95 percent of capacity and producing 10.4 million barrels of gasoline daily and 5.2 million barrels of distillate. Gasoline stockpiles booked a drop of 2.9 million barrels last week, compared with a fall of 800,000 barrels in the previous week.

All figures point to a usual seasonal change as driving season in America draws nearer. This may be cause for optimism that at least part of the inventory will become gasoline and be used up during the summer, but last year, the driving season failed to take care of excess crude oil inventories and considerably contributed to a general feeling of gloominess among oil traders.

Still, just like API’s report propped up prices, albeit not by much, the EIA’s latest figures are bound to boost them further. The effect could also last longer than last week’s price reaction to the inventory draw as refinery runs have been increasing consistently over the last few weeks and more inventory declines are likely in the coming weeks.

WTI was trading up 0.17% at $48.40 at 11:13am EST, with Brent trading down 0.16% at $50.68 per barrel.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Prakash Elumalai on June 01 2017 said:
    Please be careful with the choice of words -

    the EIA reinforced the mood by confirming a significant build in inventories.

    WRONG MESSAGE
  • Frank the Tank on June 01 2017 said:
    New Saudi strategy is shipping less crude to the US and ceding marketshare to frackers in the hope that if US inventories draw down, it'll drag Brent upward prior to the Aramco IPO. Desperation.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play