• 15 mins Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 4 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 5 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 7 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 1 day Oil Prices Rise After API Reports Major Crude Draw
  • 1 day Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 1 day Gazprom Speaks Out Against OPEC Production Cut Extension
  • 1 day Statoil Looks To Lighter Oil To Boost Profitability
  • 1 day Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 day Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 1 day Whitefish Energy Suspends Work In Puerto Rico
  • 1 day U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 2 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 5 days Iran Prepares To Export LNG To Boost Trade Relations
  • 5 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 6 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 6 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry
  • 7 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 7 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
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

Oil Spikes After EIA Reports Surprise Draw To Crude Inventories

Shale gas rig

The EIA reported a draw of 2.6 million barrels in U.S. commercial crude oil inventories, a day after the American Petroleum Institute shocked and unsettled oil markets with an estimated 4.68-million-barrel increase in inventories.

EIA’s official figures peg inventories at 483.2 million barrels, from 485.8 million barrels last week, when they declined by 2.4 million barrels. Analysts polled by the Wall Street Journal expected the EIA to report a draw of 1.7 million barrels.

The report comes amid growing worry among investors that OPEC members won’t be able – or willing – to comply with their new production quotas aimed at reducing total group production to 32.5 million bpd.

As history suggests, both OPEC and non-OPEC producers often find it hard or are simply unwilling to adhere to their commitments. What’s more, OPEC continued pumping full-force in November, which means that its initial cut target of 1.2 million bpd has now jumped to 1.7 million bpd, according to a fresh OPEC production report from the International Energy Agency.

The EIA also reported today that refineries in the U.S. processed an average daily of 16.5 million barrels of crude, operating at 90.5 percent of capacity and producing 9.8 million barrels of gasoline and 5 million barrels of distillate.

Gasoline inventories rose by 500,000 barrels in the seven days to December 9, exceeding the upper limit of the historical average for this time of year, while distillate inventories were down by 800,000 barrels on the week. Gasoline inventories have seen builds over the past five weeks, just as winter takes over and demand for the product declines. Related: The One Chart Showing The Real Cost Of US Energy

Imports stood at 7.4 million bpd, a decline on the previous week’s 8.3 million bpd.

Oil prices, already on the slide back to US$50 thanks to the growing investor concern over OPEC’s trustworthiness and November production figures that show increases, not decreases, are likely to experience a rebound after EIA’s report, though it will most likely be a short-lived one, as a growing number of observers note that the data that the agency reports does not reflect actual inventories of crude oil.

At the time of writing, WTI was changing hands at US$51.99 a barrel, and Brent crude was trading at US$54.97 a barrel, both benchmarks down by more than 1 percent.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




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