• 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.
  • 3 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 11 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 2 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 15 hours Let's shut down dissent like The Conversation in Australia
  • 8 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 14 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 21 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 20 hours Hong Kong protesters appeal to Trump for support.
  • 5 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 10 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 11 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.
  • 14 hours Iran in the world market
Alt Text

The Coming M&A Wave In U.S. Shale

A slowdown in the U.S.…

Alt Text

UK Offshore Oil & Gas Is About To Boom Again

The UK offshore scene is…

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 Spikes On Major Inventory Draw

A day after the American Petroleum Institute pushed oil prices higher by estimating an inventory draw of as much as 7.55 million barrels for last week, the Energy Information Administration reported a draw of 12.8 million barrels in crude oil inventories, pushing prices further up significantly. This is the most substantial inventory decline in at least a year.

Yesterday, following API’s report, Brent crude touched its highest price level in almost four weeks as the oil market once again dances to the Middle Eastern tensions tune, with animosity between Washington and Tehran rising further after President Trump announced sanctions against senior Iranian government officials including the country’s Supreme Leader Ali Khamenei.

API’s report on stockpiles also had a role to play in the rise but this role has proved to be a minor one each week as sentiment reverses in hours once the EIA comes out with the official inventory figures. This week, however, it provided a significant boost to prices as analysts had expected a much smaller draw, of some 2.5 million barrels.

The authority today also reported a gasoline inventory draw of 1 million barrels for the week to June 21, compared with a draw of 1.7 million barrels for the week before. Production stood at 10.5 million bpd, while a week earlier it averaged 10.4 million bpd.

In distillate fuels the authority reported an inventory decline of 2.4 million barrels for last week, which compared with a minor draw to the tune of 600,000 barrels a week earlier. Production of distillate fuels averaged 5.3 million bpd last week, which compared with 5.4 million bpd a week earlier.

At the time of writing, Brent crude was trading at US$65.22 a barrel, with West Texas Intermediate at US$59.17 a barrel, both higher than yesterday’s close thanks to the API estimate and the deteriorating U.S.-Iranian situation. The next big event—bar unforeseen ones—will be OPEC’s meeting on production next week. It would divert a bit of attention from Middle Eastern politics but will undoubtedly heighten price volatility considerably as well.

By Irina Slav 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