• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 3 hours Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 3 hours Here's your favourite girl, Tom!
  • 4 hours Civil Unrest Is Erupting All Over The World, But Just Wait Until America Joins The Party...
  • 5 hours Australian Hydroelectric Plant Cost Overruns
  • 1 hour Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 1 hour China's Blueprint For Global Power
  • 2 hours Nigeria Demands $62B from Oil Majors
  • 2 hours IMO 2020:
  • 18 hours Brexit agreement
  • 4 hours Ford Planning Huge North American Charging Network
  • 20 hours The Problem Is The Economy, Not The Climate
  • 18 hours 5 Tweets That Change The World?
  • 17 hours Bloomberg: shale slowing. Third wave of shale coming.
Alt Text

Oil Discoveries Hit 70-Year Low

The last three years has…

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

Significant Crude Build Weighs On Oil Markets

The Energy Information Administration reported a huge crude oil inventory build for the week to November 9 of 10.3 million barrels, arresting an improvement in oil prices that started yesterday after a sharp drop earlier this week.

Amid growing concern about a weakening in global oil demand and rising production from OPEC and outside it, notably in the United States, the EIA also reported a 1.4-million-barrel decline in gasoline inventories and another one, of 3.6 million barrels, in distillate fuel inventories.

At 10.1 million barrels daily, gasoline production last week was considerably higher than the 9.7 million bpd booked a week earlier. Distillate fuel production averaged 5 million bpd, virtually unchanged on a week earlier.

Refineries processed 16.4 million barrels daily last week, the EIA said, another flat figure on a weekly basis.

Winter is coming and demand for crude and fuels would normally weaken, pressuring prices. In this sense, the EIA latest weekly report reflects/stands out from normal seasonal demand patterns. Yet its effect on prices is likely to be excessive amid heightened volatility resulting from two new reports with a pessimistic outlook for global demand, from the International Energy Agency and OPEC.

Both IEA and OPEC expect slower demand growth than they did earlier this year, mostly on the back of slower global economic growth. Yet there is also worry about oversupply, resulting once again from the relentless increase in U.S. crude oil production, which two weeks ago hit 11.6 million barrels daily and will likely continued higher last week as well, as drillers added more rigs.

At the time of writing Brent crude traded at US$67.02 a barrel, up modestly from yesterday’s close, after earlier this week plunging close to US$65 a barrel under the double blow of rising supplies and a call from President Trump to OPEC to refrain from production cuts. West Texas Intermediate traded at US$56.86 a barrel, also recouping some of the losses it suffered earlier this week.

WTI slipped almost directly after markets digested the biggest crude build in 21 months


By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Mamdouh G Salameh on November 15 2018 said:
    It is not US crude build that is weighing on oil markets, it is the global oil market giving a sigh of relief with the realization that US sanctions have not cost Iranian crude oil exports a single barrel so far. The market has been bombarded before the sanctions went into force with projections that Iran could lose between 500,000 barrels a day (b/d) to 1.5 millon barrels a day (mbd) of its exports. This has not materialized. Furthermore, the issuing of sanction waivers to eight countries who don’t need them in the first place and who would have continued to buy Iranian crude waivers or no waivers is the clearet admission by the United States that their zero option is out of reach and that sanctions are doomed to fail.

    Another factor weighing on prices is that the global oil market has not re-balanced completely and that there is a small pocket of glut capable of taking care of outages in Venezuela and elsewhere. That is why Saudi Arabia’s and Russia’s decision to add 650,000 b/d six weeks ago to keep prices down was a major mistake.

    Because of its very strategic importance to the global economy, oil is always subjected to various economic and geopolitical pressures virtually on daily basis thus creating a volatility of prices. That is why one shouldn’t be surprised to see oil prices shuttling between bull and bear markets all the time.

    A few weeks ago oil hit $87 a barrel. Today it is $67. The day after the markets could change from bearish to bullish sending prices up to $80.

    You and other contributors to the oilprice.com continue to extol the impact of US oil production and inventories on the global oil market and prices. If that is the case, then why does President Trump keep haranguing OPEC to raise production to keep prices down. It points to one thing: EIA’s claims are plain untruths.

    The robust fundamentals of the global oil market are still the same as they were in October when the oil price hit $87. These fundamentals could still support an oil price ranging from $80-$85 before the end.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play