• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days Does Toyota Know Something That We Don’t?
  • 3 days America should go after China but it should be done in a wise way.
  • 9 days World could get rid of Putin and Russia but nobody is bold enough
  • 11 days China is using Chinese Names of Cities on their Border with Russia.
  • 1 hour Even Shell Agrees with Climate Change!
  • 11 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 12 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 12 days Putin and Xi Bet on the Global South
  • 12 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 12 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
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

Surprise Draw In Fuel Inventories Boosts Oil Prices

Oil prices recovered a bit on Wednesday morning after the Energy Information Administration reported an inventory build of 1.2 million barrels for the week to June 12. Fuel inventories, however, fell.

This compared with a 5.7-million-barrel build for the week before that. Analysts had expected the EIA to report a modest build of half a million barrels for the week to June 12. A day earlier, the American Petroleum Institute reported an inventory increase of 3.86 million barrels.

Oil prices have been on the decline over the past couple of days, swung around by fears of a second wave of Covid-19 on the one hand, and expectations that the world’s crude oil oversupply may be starting to inch down. For now, the bearish factors seem to have the upper hand.

The EIA’s report may, however, change the sentiment: the authority also reported a gasoline decline of 1.7 million barrels for the week to June 12, after it estimated a weekly build of 900,000 barrels for the previous week. Gasoline production increased last week, at 8.4 million bpd. This compared with 8.1 million bpd a week earlier.

In distillate fuels, the EIA estimated a 1.4-million-barrel draw in inventories for last week, after a 1.6-million-barrel build the previous week. Distillate fuel production averaged 4.5 million bpd, down on a week earlier.

Distillate fuel stockpiles have been rising steadily and strongly over the past few weeks in the U.S. as demand for different oil products recovered unevenly after lockdowns began to be lifted.

Reuters’ John Kemp wrote in a weekly column that the surplus came from the discrepancy between gasoline demand, which was recovering quickly, and jet fuel demand, which was lagging far behind. As a result, Kemp explained, middle distillates that would have normally been used to make jet fuel were used to make diesel fuel instead. Diesel demand has also been slow to recover.

Refinery runs last week averaged 13.6 million bpd, up slightly on the previous week.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





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