• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 20 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 2 hours Hopes Are Dashed For International Oil Companies In North Iraq
  • 6 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 6 hours The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 2 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 4 days Changing Gazprom ADRs to Russian shares
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Oil Dips Amid Renewed Demand Concerns

Oil Dips Amid Renewed Demand Concerns

Oil prices plunged by 4%…

It’s Time For An Oil And Gas Boom In Africa

It’s Time For An Oil And Gas Boom In Africa

While many countries, including the…

OPEC+ Oil Production Could Dip In September

OPEC+ Oil Production Could Dip In September

The 100,000 bpd production target…

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 Further On Large Crude Inventory Draw

Crude oil prices went up today on bullish news from the U.S. Energy Information Administration, which reported a 6.4-million-barrel draw in crude oil inventories and another draw in fuel inventories.

A week earlier, the EIA had estimated a modest 1.3-million-barrel decline in crude oil inventories but a sizeable draw in gasoline pushed prices higher, signaling that strong demand has not wavered amid the latest surge in Covid-19 infections.

For the week to September 10, the EIA reported another draw in gasoline inventories, at 1.9 million. This compared to a draw of 7.2 million barrels a week earlier.

Production of gasoline last week averaged 9.3 million bpd, which compared with 10.1 million bpd a week earlier.

Middle distillate inventories shed 1.7 million barrels in the week to September 10, which compared with a draw of 3.1 million barrels for the previous week.

Production of middle distillates averaged 4.2 million bpd last week, compared with 4.2 million bpd during the previous week.

A day before the EIA reported inventory moves, the American Petroleum Institute had estimated crude oil stocks had shed close to 4 million barrels, pushing prices higher. Since the start of the year, according to API numbers, U.S. crude oil stocks have declined by 70 million barrels.

Meanwhile, production is set to rise as the inventory of drilled but uncompleted wells in the U.S. shale patch declines. This, however, should not be a problem for prices since demand is strengthening, too.

In its latest monthly oil report, the International Energy Agency forecast a 1.6-million-bpd rebound in global oil demand next month as the Delta variant of the coronavirus releases its grip on economies. It would then continue to grow through the rest of the year, the agency said, before beginning to slow down next year.

“The market should shift closer to balance starting from October if OPEC+ continues to unwind production cuts. Even so, it is only by early 2022 that supply will be high enough to allow oil stocks to be replenished,” the IEA said in its report.

This would provide stable support for prices over the next few months, and it is support that will be needed as U.S. shale drillers ramp up along with OPEC+ to offset depletion from legacy wells.

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

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News