• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 1 min A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 7 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 8 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 3 hours Used Thin Film Solar Panels at 15 Cents per Watt
  • 8 hours China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 14 hours US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 2 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 14 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 20 hours It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 17 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 21 hours Offshore subsea sub 50$/bbl : Rystad Energy: High stakes in store for subsea markets if oil falls to $50/bbl
  • 18 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 13 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 12 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
Alt Text

Will We See An Oil Supply Glut In 2020?

Oil prices seem to be…

Alt Text

Saudi Arabia’s Newest Strategy To Send Oil Prices Higher

Saudi Arabia’s efforts have been…

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 Slumps On Major Inventory Build

Crude oil prices fell after the Energy Information Administration reported an 8-million-barrel build in U.S. crude oil inventories for the week to September 28. Although expected by some analysts and industry observers, the build was substantial enough to hurt prices.

A day after the American Petroleum Institute reported a modest inventory build of less than a million barrels, EIA’s figures are likely to push prices further down in the next couple of days as the oil market writhes in the throes of supervolatility brought about by the impending U.S. sanctions against Tehran and the uncertainty surrounding other producers’ capacity to increase production quickly enough to offset any supply loss, despite new assurances from Riyadh Saudi Arabia will boost its output in October and November.

Yet demand is also beginning to worry analysts and traders: with Brent crude at over US$80 and climbing closer to US$85 a barrel, some of the world’s biggest importers, notably India, would be quick to start curbing their intake. With forecasts about the benchmark hitting US$100 a barrel before the end of December, chanced are importers are bracing up for a fatter bill that will affect their economic growth prospects and future oil demand.

Demand in the United States is also seen to weaken in the last three months of the year, as it usually does during the winter season because of refinery maintenance season and less driving. As a result, analysts have been warning of inventory builds in both crude and fuels. Related: Citi: Brent-WTI Spread Could Widen To 5-Year High

The EIA reported a 500,000-barrel decline in gasoline stockpiles for the final week of September, compared with a 1.5-million-barrel build a week earlier. Gasoline production averaged 10 million bpd last week, compared with 9.8 million bpd in the prior week.

In distillate fuel, the EIA reported an inventory draw of 1.8 million barrels, versus a draw of 2.2 million barrels a week earlier. Distillate production stood at 5 million bpd in the last week of September, unchanged on the week. Refineries processed 16.6 million bpd of crude in the reporting period, up by 77,000 bpd from the previous week’s 16.5 million bpd.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Mitch on October 03 2018 said:
    An almost 1 million b/d decline in exports will do that. Would be nice to see some explanation on the nuances of why exports fluctuate so much at times
  • Patrick on October 03 2018 said:
    Where did you get that crude prices fell after the report? Prices were down prior to the report releasing but bounced back within minutes following the release of the report at 10:30 Eastern. For a site called oilprice.com I would expect more monitoring of the actual oil price.
  • JACK MA on October 03 2018 said:
    You cannot stop prices from rising no matter what. Prices cannot be talked down even with the best spin doctors employing their best narratives. Oil will rise to 100 and then well beyond. The only hope now for the Central Banks to collapse Russia is to send oil to 200, hurt the buyer of oil not the seller, make IMF loans to the buyer to buy 200 oil but on the condition they ONLY buy oil in dollars and not any other currency such as the Yuan or the ruble. This will be the new strategy to inflict pain on the BRICS nations. A very old strategy is that a seller is nothing without his buyer. The Central banks must therefore control the buyer so to do so, expect 200 oil. No stopping it unless the Central Banks are willing to surrender dollar hegemony. That will never happen. IMHO
  • Andrew on October 03 2018 said:
    Market completely irrational and actually climbed on the news, can't wait to see what the reasoning is

Leave a comment




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