• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 43 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Reality catching up with EV forecasts
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 13 days US Oil Independence is a myth and will always be a myth
  • 3 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 9 days The Federal Reserve and Money...Aspects which are not widely known
  • 17 days Natural gas price to spike when USA is out of the market
  • 13 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 16 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 16 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
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

Rising Fuel Stocks Push Oil Prices Lower

Crude oil prices fell on Wednesday after the Energy Information Administration reported a crude oil inventory draw of 3.5 million barrels for the week to April 2 along with a hefty gasoline stock increase and a build in distillates.

This compares with an inventory decline of 900,000 barrels reported for the previous week and analyst expectations for an inventory draw of 1.325 million barrels for the period.

A day earlier, the American Petroleum Institute had estimated a crude oil inventory draw of 2.62 million barrels but a much larger build in gasoline stocks, which put additional pressure on prices already weighed down by soaring Covid-19 infection numbers in several big markets.

In gasoline, the EIA estimated an inventory build of 4 million barrels for the reporting period, compared with a 1.7-million-barrel decline a week earlier. Gasoline production averaged 9.3 million bpd last week, a slight decline on the week before.

ADVERTISEMENT

In a separate report, the EIA said this week that it expected gasoline consumption during the summer to improve further, after already rising from 7.7 million bpd in January to 8.6 million bpd in March.

In middle distillates, the authority reported an estimated inventory build of 1.5 million barrels for the week to April 2. This compared with a build of 2.5 million barrels for the prior week.

Middle distillate production averaged 4.6 million bpd last week, down from the previous week when output averaged 4.7 million bpd.

ADVERTISEMENT

Oil prices have been enjoying the effects of economic optimism in the United States, with jobs data for March suggesting hiring is strong, even though it has yet to catch up with pre-pandemic levels of employment, and the economy is on track to post strong growth this quarter and later on in the year.

On the flip side, infection numbers are still on the rise in many parts of the world, including much of the U.S., which is having a negative effect on prices.

At the time of writing, Brent crude was trading at $62.48 a barrel, with West Texas Intermediate at $59.03 a barrel, both slightly down from the opening of trade.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News