• 4 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 3 hours Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 3 hours Something wicked this way comes
  • 4 hours A sneak peak into the US election
  • 5 hours America's Frontline Doctors - Safely Start Living Again!
  • 8 hours France Sees 10.6% EV Market Share In September — 4× Growth Year On Year
  • 22 hours covid. stop the carriers and thus stop the virus.
  • 1 day Is the coal industry on the way out?
  • 1 day "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 2 days GPOR - Gulfport Oil - Why?
  • 9 hours California’s Electric Vehicle Dream Has A Major Problem: No
  • 10 hours Tesla Model 3 Is September's Top Selling Car of All Vehicles in Switzerland
  • 1 day Tucker Carlson responds to CDC after agency critiques commentary about mask-wearing
  • 17 hours Vote Biden for Higher Oil Prices
  • 18 hours Permian in for Prosperous and Bright Future
  • 23 hours Ethanol present in gasoline
IMF Sees Oil Prices At $40-50 Next Year

IMF Sees Oil Prices At $40-50 Next Year

Oil prices are not expected…

Is This Europe’s Newest Oil & Gas Hotspot?

Is This Europe’s Newest Oil & Gas Hotspot?

Malta’s undrilled offshore oil and…

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 Spike On Strong Crude Inventory Draw

A day before OPEC’s meeting in Vienna, where the cartel should announce officially the nine-month extension to its crude oil production cut deal, the Energy Information Administration added to optimism on the market by reporting a healthy draw in crude oil inventories.

According to the authority, inventories fell by 4.4 million barrels in the week to May 19, to a total 516.3 million barrels. The update came a day after the American Petroleum Institute reported a 1.5-million-barrel draw in commercial inventories, falling short of analyst expectations for a decline of 2.3 million barrels. This was the second week when analysts expected an over two-million-barrel draw.

The EIA also said that refinery runs averaged 17.3 million bpd last week, compared with 17.1 million bpd in the previous week. Gasoline production also went up, to more than 10.2 million barrels per day, from 10 million bpd in the week to May 12. Gasoline inventories followed the performance of oil, declining by 800,000 barrels.

The EIA’s latest weekly update comes amid growing optimism for the future of oil prices, as the International Energy Agency and OPEC continue to insist that market rebalancing is near. Both Brent crude and West Texas Intermediate are back above US$50 a barrel, gaining US$5 and more over the last two weeks.

Tomorrow’s announcement from OPEC will probably push prices higher still, and the rally could continue for a while longer this time, as the cartel demonstrated high compliance rates with the initial production cut deal contrary to expectations. Related: OPEC Deal: 9-Month Extension Looking Increasingly Likely

Whether the rally could be sustained, however, remains doubtful. U.S. drillers continue to add rigs, sowing the seeds of future output increases in the shale patch. Although some industry observers are doubtful about how great an increase in production eight new rigs can make, the fact is that more rigs does inevitably mean more production. Regardless of the size of this increase the market tends to react with a knee jerk and prices fall, just like they rise whenever an OPEC official says the output cut deal will be extended.

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