• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 2 hours americavchina.com (otherwise known as OilPrice).
  • 1 day Everything you think you know about economics is WRONG!
  • 1 day Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 2 days Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 9 hours Natural Gas
  • 5 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 2 days Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 15 hours Winter Storms Hitting Continental US
  • 1 day 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 2 days Quotes from the Widowmaker
  • 2 days Tesla Launches Faster Third Generation Supercharger
  • 4 hours My interview on PDVSA Petrocaribe and corruption
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
Download on the App Store Get it on Google Play