• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 11 hours PETROLEUM for humanity 
  • 12 hours Why don't the other GOP candidates get mention?
  • 17 mins China's Blueprint For Global Power
  • 1 hour Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 11 hours Disenfranchised people are angry people - map of global electoral systems
  • 10 hours Brexit agreement
  • 11 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 1 min ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 17 hours Spain Is On The Edge...Clashes Between Catalonia And "Madrid"
  • 25 mins Erdogan Holds All The Cards ... 3.6 Million Of Them
  • 19 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 18 hours 5 Tweets That Change The World?
Alt Text

Oil Prices Fall On Onslaught Of Bearish News

Oil prices saw their worst…

Alt Text

Inventory Build Sends Oil Prices Lower

Oil prices slipped shortly after…

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 On Crude, Gasoline Inventory Draw

After API’s Tuesday estimate of a 1.047-million-barrel crude oil inventory draw pushed prices higher, the Energy Information Administration added optimism by confirming a draw, albeit a smaller one, at 1.1 million barrels.

Although at 427.6 million barrels, U.S. crude oil inventories are firmly within the seasonal average, every report of a build affects markets in an environment of now chronic nervousness. The nervousness—and the excessive volatility it brings with it—are largely a result of the conflict between fundamentals and various market fears that creates wild price swings.

The latest demonstration was oil prices’ reaction to the Western strikes in Syria, which failed to result in any sustainable price increase after the initial jump. This, according to some analysts, was because fundamentals simply trumped geopolitical concerns and fears of a “third world war.” Other believed it was because an escalation in Syria was already factored into price estimates, so it failed to make a deep enough impression.

Fundamentals are indeed weighing on prices: U.S. oil production exceeded 10.5 million barrels daily two weeks ago and most likely continued to increase last week as well. In its latest monthly Drilling Productivity Report, the EIA said that U.S. shale production is expected to increase by 125,000 bpd in May over April, with the Permian production surging by 73,000 bpd, Eagle Ford’s—by 24,000 bpd, and the Bakken’s by 15,000 bpd. This will no doubt add to worries about prices in spite of the continuing fall in Venezuelan oil production. Related: A Natural Gas Giant Like No Other

In fuels, the EIA reported a gasoline stockpile draw of 3 million barrels, compared with a half-a-million-barrel increase in the week before. Distillate inventories were also down, by 3.1 million barrels, after a weekly draw of 1 million barrels in the prior seven-day period.

Daily gasoline production averaged over 10.2 million barrels in the week to April 13 and distillate production stood at 5.1 million. To compare, a week earlier, refineries churned out 10.2 million bpd of gasoline and 5.3 million bpd of distillate. Daily crude oil processing averaged 16.9 million barrels, down slightly from 17 million barrels a week earlier.

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