• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 4 mins The Most Annoying Person You Have Encountered During Lockdown
  • 30 mins Which producers will shut in first?
  • 13 hours Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 5 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 10 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 5 hours How to Create a Pandemic
  • 5 hours Breaking News - Strategic Strikes on Chinese Troll Farms
  • 23 hours WE have a suicidal player in the energy industry
  • 11 hours A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 14 hours Death Match: Climate Change vs. Coronavirus
  • 6 hours Where's the storage?
  • 9 hours KSA taking Missiles from ?
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 Slide On Surprise Crude Build

The Energy Information Administration reported a 2.4-million-barrel build in crude oil inventories for the week to August 2, shattering expectations of another sizeable draw.

Analysts had expected a draw of 3.13 million barrels after last week the authority reported a hefty 8.5-million-barrel decline in inventories that sent West Texas Intermediate soaring.

The American Petroleum Institute reported yesterday another weekly decline in oil inventories, of 3.4 million barrels, but this time the figure failed to impress. With EIA rejecting it, chances are the slide in oil prices will now accelerate.

The EIA’s figures are also unlikely to reverse the drop in oil prices, which started this week with the spike in now chronic trade tensions between the United States and China, with Washington accusing Beijing of manipulating its currency to its advantage, after the yuan dropped on Monday to the lowest against the greenback in more than 10 years.

The EIA also reported an increase in gasoline inventories, which will not help prices, either. After a 1.8-million-barrel decline for the week to July 26, last week these added 4.4 million barrels. Gasoline production averaged 10.4 million bpd, a modest increase from last week’s average daily production rate.

In distillate fuels, the EIA reported an inventory build of 1.5 million barrels, which compared with a decline of 900,000 barrels for the previous week. Distillate fuel production averaged 5.3 million bpd, compared with 5.2 million bpd a week earlier.

With the U.S.-China tensions stoking fears about oil demand and economic growth on a global scale, it’s hardly any wonder prices are falling despite the strongly bullish factor that is the Middle East and specifically Iran. However, it seems in the past couple of weeks the bearish factors are prevailing if hedge funds are any indication: their bets on oil were precariously balanced between bullish and bearish last week, with money managers divided in their response to mixed market signals.

At the time of writing, Brent crude traded at US$57.39 a barrel and West Texas Intermediate changed hands for US$52.00 a barrel, both benchmarks down from yesterday’s close by over 2 percent.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Bob Smith on August 07 2019 said:
    An important fact that was missed is that production was flat. The increase was entirely due to increased imports and decreased exports. In other words, there isn't more oil out there overall but the US brought in more and refined more in anticipation of increased summer driving.
  • Bob Smith on August 07 2019 said:
    An important fact that was missed is that production was flat. The increase was entirely due to increased imports and decreased exports. In other words, there isn't more oil out there overall but the US brought in more and refined more in anticipation of increased summer driving.

Leave a comment




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