• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 5 hours Let's shut down dissent like The Conversation in Australia
  • 6 mins Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 8 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 6 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 4 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 8 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 15 hours Donald Trump Proposes Harnessing Liberal Tears To Provide Clean Energy
  • 15 hours Saudis Confirm a Cruise Missile from Iranian Origin
  • 14 hours Saudis Buying Oil From Iraq
  • 6 hours Hong Kong protesters appeal to Trump for support.
  • 22 hours Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 1 day China Faces Economic Collapse
  • 1 day Democrats and Gun Views
Alt Text

Analyst: OPEC’s Cuts Actually Destabilize Oil Market

Contrary to its official mission…

Alt Text

Oil Rises After EIA Reports Crude Inventory Draw

Oil prices rose further on…

Alt Text

China Just Got Handed The Oil Deal Of A Lifetime

China and Russia are sewing…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Prices Tank On Record U.S. Production, Surging Inventories

Oil prices plunged early on Thursday to the lowest in a month after U.S. government data showed on Wednesday that inventories hit their highest since September 2017 and production soared to another record level last week.

As of 11:25 EDT on Thursday, WTI Crude was plunging 3.68 percent at $61.26 and Brent Crude was trading down 2.67 percent at $70.25.

On Wednesday, oil prices dipped after the Energy Information Administration (EIA) reported a substantial build in crude oil inventories, at 9.9 million barrels for the last week of April.

At 470.6 million barrels, U.S. crude oil inventories are at the five year average for this time of year, the EIA said, but this level of stockpiles is the highest since September 2017. The inventory build also comes at a time when OPEC—led by significant losses in production by Venezuela and Iran, as well as conscious efforts to curb production by Saudi Arabia—has purposed to drawdown these inventories.

“This comes as U.S. refineries head into the spring maintenance period, stoking fears that crude oil demand will be soft and stockpiles will continue to rise,” Reuters quoted ANZ bank as saying.

Meanwhile, the EIA’s weekly estimate for U.S. crude oil production showed that output jumped to a new record-high of 12.3 million bpd for the week ending April 26.  

This record production, combined with U.S. inventories at their highest level in 19 months, weighed heavily on oil prices on Thursday.

“When the U.S. crude-oil warehouses bulge to their highest levels since September 2017, while production continues to set new high-water marks, warning signals should be flashing red,” Stephen Innes, head of trading at SPI Asset Management, told Bloomberg today.

In another bearish signal, Russian government data showed on Thursday that Russia’s oil production dropped in April from March, but missed, again, Russia’s target under the OPEC+ production cut deal. According to Reuters calculations of government data in tons, Russian production stood at 11.23 million bpd last month, down from 11.3 million bpd in March, but still not enough to meet Russia’s pledge to cut output to 11.191 million bpd.

By Tsvetana Paraskova 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