• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 16 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 day Pakistan: "Heart" Of Terrorism and Global Threat
  • 11 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 4 hours Starvation, horror in Venezuela
  • 12 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Venezuela set to raise gasoline prices to international levels.
  • 24 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 4 hours China goes against US natural gas
  • 1 day Corporations Are Buying More Renewables Than Ever
  • 5 hours Why hydrogen economics does not work
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