• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 23 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 41 mins While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 5 hours Marine based energy generation
  • 1 hour Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 45 mins China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 3 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 9 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 19 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 1 day Trafigura CEO Weir says, "We will see 30% to 35% drop in demand". That amounts to 35mm bbls/day glut ! OPEC+ 10 mm cut won't fix it. It's a DEMAND problem.
  • 6 hours Which producers will shut in first?
  • 15 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 1 day The Most Annoying Person You Have Encountered During Lockdown
Alt Text

S&P Cuts Oil Nations Ratings

Several oil-producing nations woke up…

Alt Text

Texas Oil Drillers Prepare To Halt Production

Texas oil companies may soon…

Alt Text

How Far Will Trump Go To Save U.S. Shale?

Washington is increasingly worried that…

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 Soars On Crude Inventory Draw

The Energy Information Administration reported today a crude oil inventory draw of 4.9 million barrels for the week to November 29, after a 1.6-million-barrel increase reported for the previous week.

Analysts had expected an inventory decline of 1.798 million barrels and the American Petroleum Institute yesterday estimated inventories had gone down by 3.72 million barrels, which pushed oil prices higher.

In gasoline, the EIA reported an inventory increase of 3.4 million barrels for the week to November 27, down from a build of 5.1 million barrels reported for the previous week. Gasoline production averaged 9.9 million bpd.

In distillate fuels, the authority estimated a 3.1-million-barrel inventory increase, compared with a build of 700,000 barrels for the previous week. Production last week averaged 5.3 million bpd.

Refineries in the United States processed 16.8 million bpd last week, up from 16.2 million bpd a week earlier. Imports averaged 6 million bpd, down from 6.2 million bpd a week earlier.

While oil prices rebounded on the surprising news from the API, whose weekly inventory surprises have lately been more on the negative side, there is a major downward risk for them: the OPEC and OPEC+ meetings. Related: Will The OPEC Meeting Yield A Bullish Surprise?

OPEC is meeting on Thursday to discuss how to handle the production cuts going forward and then, a day later, it is meeting with Russia and its other partners. As usual, Russia’s Alexander Novak is keeping his cards close to his chest, although the dominant expectation is that Moscow will continue to play along with OPEC.

There is, however, room for doubt. Reports from OPEC say Saudi Arabia wants to deepen the cuts, and this might not be something Russia would be too happy to do. What’s more, even if it agrees to deeper cuts this will not automatically mean it will implement it. Like some OPEC members, Russia has not been particularly strict about staying within its OPEC+ assigned quota. In fact, it has been exceeding this quota for most of the year.

As a result, there is the possibility that no deeper cuts will be agreed. This, according to Rystad Energy, could pressure prices to $40 a barrel as it would lead to a sizeable supply surplus in 2020.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Pras Dhak on December 04 2019 said:
    Crude was drawn to produce stockpiles of gasoline and distillate fuel. Why is this increasing the price of oil?

Leave a comment




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