• 4 hours WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 9 hours Norway Grants Record 75 New Offshore Exploration Leases
  • 13 hours China’s Growing Appetite For Renewables
  • 16 hours Chevron To Resume Drilling In Kurdistan
  • 19 hours India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 20 hours India’s Reliance Boosts Export Refinery Capacity By 30%
  • 21 hours Nigeria Among Worst Performers In Electricity Supply
  • 1 day ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 1 day Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 2 days Saudis To Award Nuclear Power Contracts In December
  • 2 days Shell Approves Its First North Sea Oil Project In Six Years
  • 2 days China Unlikely To Maintain Record Oil Product Exports
  • 2 days Australia Solar Power Additions Hit Record In 2017
  • 2 days Morocco Prepares $4.6B Gas Project Tender
  • 2 days Iranian Oil Tanker Sinks After Second Explosion
  • 4 days Russia To Discuss Possible Exit From OPEC Deal
  • 4 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
  • 5 days Kenya Cuts Share Of Oil Revenues To Local Communities
  • 5 days IEA: $65-70 Oil Could Cause Surge In U.S. Shale Production
  • 5 days Russia’s Lukoil May Sell 20% In Oil Trader Litasco
  • 5 days Falling Chinese Oil Imports Weigh On Prices
  • 5 days Shell Considers Buying Dutch Green Energy Supplier
  • 5 days Wind And Solar Prices Continue To Fall
  • 6 days Residents Flee After Nigeria Gas Company Pipeline Explodes
  • 6 days Venezuela To Pre-Mine Petro For Release In 6-Weeks
  • 6 days Trump Says U.S. “Could Conceivably” Rejoin Paris Climate Accord
  • 6 days Saudis Shortlist New York, London, Hong Kong For Aramco IPO
  • 6 days Rigid EU Rules Makes ICE Move 245 Oil Futures Contracts To U.S.
  • 6 days Norway Reports Record Gas Sales To Europe In 2017
  • 6 days Trump’s Plan Makes 65 Billion BOE Available For Drilling
  • 6 days PetroChina’s Biggest Refinery Doubles Russian Pipeline Oil Intake
  • 7 days NYC Sues Five Oil Majors For Contributing To Climate Change
  • 7 days Saudi Aramco Looks To Secure $6B In Cheap Loans Before IPO
  • 7 days Shell Sells Stake In Iraqi Oil Field To Japan’s Itochu
  • 7 days Iranian Oil Tanker Explodes, Could Continue To Burn For A Month
  • 7 days Florida Gets An Oil Drilling Pass
  • 8 days Oil Prices Rise After API Reports Staggering Crude Oil Draw
  • 8 days Tesla Begins Mass Production Of Solar Shingles
  • 8 days EIA Boosts World Oil Demand Forecast For 2018 By 100,000 Bpd
  • 8 days Businessman Seeks Sale Of $5.2B Stake In Kazakhstan Oil Field
Alt Text

OPEC Should Thank Venezuela For Falling Production

OPEC’s crude oil production remained…

Alt Text

The Biggest Loser Of The OPEC Deal

The OPEC production cut deal…

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