• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 3 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 14 hours Will Uncle Sam Step Up and Cut Production
  • 2 days Movie Script: Epstein Guards Suspected Of Falsifying Logs
  • 20 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 16 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 3 hours Continental Resource's Hamm (Trump Buddy) wants shale to cut production.Can't compete with peers. Stock will drop in half again.
  • 3 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 1 day Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 12 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 2 days I think I might be wrong about a 2020 shakeout
  • 2 days Kremlin Says WTO's Existence Would Be In Doubt If the U.S., Others Left
  • 52 days To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 2 days Why Oil is Falling (including conspiracy theories and other fun stuff)
Alt Text

EIA Lowers World Oil Demand Forecast Again

The US Energy Information Administration…

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 Slip On Bearish Inventory Data

The Energy Information Administration reported a 2.8-million-barrel build in U.S. commercial oil inventories, a day after the American Petroleum Institute estimated the inventories had expanded by 2.93 million barrels, pressuring benchmark prices.

At 488 million barrels, commercial inventories are within seasonal limits, though near the upper end. This is some improvement on summer 2016, when inventories were consistently above the maximum for the season. The EIA does not provide reference data for average seasonal limits.

Oil rig additions are continuing across the shale patch, with last week seeing the largest seven-day increase in years, by 35 rigs, suggesting local output will only continue to grow, despite struggling oil prices.

The EIA said in its report for the week to January 20 that gasoline inventories rose by a hefty 6.8 million barrels last week, with average daily production at 8.8 million barrels. This was slightly under the previous week’s figure, which was 9 million bpd.

Refineries operated at 88.3 percent of capacity, also producing 4.6 million barrels of distillate daily, a bit down from the previous week’s 4.7 million bpd. Related: Aramco Pulls Out Of Joint Venture Talks With Petronas

Imports, according to the EIA, averaged 7.8 million barrels daily, down from the 8.4 million barrels reported for the week to January 13.

Last week saw several news and analyst reports that strongly suggest that the U.S. shale oil industry is back in growth mode, inevitably fueling doubts about the global oversupply situation.

These doubts were somewhat quenched by a recent announcement from the OPEC-Russia camp that said it was setting up a special committee to make sure all signatories to the production cut deal keep their end of the bargain, but this wasn’t enough to prop up prices or at least make them more resilient to the weekly inventory reports coming from the API and EIA, which according to some commentators, are irrelevant to actual demand and supply in the world’s biggest crude oil consumer..

At the time of writing, WTI was trading at US$52.91 a barrel, and Brent crude was selling for US$55.04, both down by less than 1 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

Leave a comment




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