• 18 hours Oil Falls As Trump Tweet Blasts OPEC
  • 13 hours Trump's Revenge: U.S. Oil Floods Europe, Hurting OPEC and Russia
  • 12 hours US eases sanctions on Rusal
  • 14 hours Michael Bloomberg Contributes $4.5 Million For Paris Climate Deal After Trump Bails
  • 4 days Comey vs.Trump, Part 2: Comey's Memos. What's next?
  • 15 hours Iran is panicking right now: Currency crunch and kicking it out of oil market
  • 16 hours Oil Prices Hit Highest Level Since 2014
  • 16 hours Investing in Oil & Gas
  • 15 hours Asian Oil Demand To Hit Record - The Price Per Barrel Continues To Grow
  • 26 mins Tesla Says Humans In, Robots Out
  • 3 days HAPPY RIG COUNT DAY!!
  • 3 days The future of oil and gas exploration in New Zealand
  • 4 days Anybody Watching Aluminum Stocks Today??
  • 17 hours Trump: "Larry, go get it done,'” - US to rejoin TPP
  • 3 days Venezuela gives Oil Minister 'Extra Powers' to halt production decline
  • 3 days Robot Completes Hardest Job Known to Man
Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Oil Prices Steady Amid Rising Crude Inventories

pipeline

As refineries along the Gulf Coast slowly resume normal operations, there was no surprise in this week’s EIA inventory report: a build of 4.6 million barrels of crude oil. The figure was higher than the 4.022 million barrels that analysts expected after the shutdown of a large portion of the United States’ refining capacity because of Hurricane Harvey.

That US crude oil inventories would increase in the wake of Hurricane Harvey was largely anticipated, with some saying as much as 40-60 million barrels could be added to inventory while shuttered refineries struggle to come back online.

According to Reuters, as of yesterday, about 3.8 million bpd in refining capacity remained shut down, representing a fifth of the US total. This has provided a support for crude oil prices, as have reports of another three storms brewing in the area of the Gulf, with the potential of growing to hurricanes, causing further shutdowns and damage.

The EIA reported that refinery runs last week averaged 14.5 million barrels of crude, a decline from 17.7 million bpd the week before, when the authority also reported a 5.4-million-barrel draw in crude oil inventories.

Gasoline production averaged 9.5 million barrels, compared with 10.6 million bpd a week earlier, with inventories falling by 3.2 million barrels in the week to September 1. Related: The Single Most Important KPI For Oil & Gas Companies

The capacity shutdowns have done international oil prices good and now news of more possible supply disruptions are supporting them, too. WTI has been climbing steadily towards US$50 and Brent has inched closer to US$55 a barrel – a price level past seen at the beginning of the year, when optimism was rife that OPEC’s deal would quickly take care of excess global supply.

Given that some analysts, including Goldman Sachs’ Damien Courvalin, believe that the effects of Harvey on demand and supply will linger for a few weeks, chances are that prices will stay where they are until the dust settles.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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