• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes The Inconvenient Truth Of Electric Cars
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 15 mins Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 14 hours Wonders of Shale - Gas, bringing investments and jobs to the US
  • 12 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 9 hours The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 3 hours The Plastics Problem
  • 4 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 11 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 9 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 5 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 18 hours Cherry Picking Climate Data
  • 16 hours Coal Boom in Asia is Real and a Long Trend
  • 14 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 3 hours Oil Demand Needs to Halve: Equinor
Alt Text

War Worries Send Oil Prices Soaring

Bullish sentiment has returned to…

Alt Text

Hedge Funds Halt Selloff In Oil As Mid-East Tensions Spike

Hedge funds effectively stopped the…

Alt Text

Middle East Tensions Move Oil Prices Higher

Oil inched higher on Tuesday…

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

Bearish EIA Data Sends Oil Lower

As confusion among oil traders persists regarding where oil prices are going to go from here, the Energy Information Administration scored one for the bears by reporting a crude oil inventory build of 4.7 million barrels in the week to May 17.

This compares with a build of 5.4 million barrels for the week before that and a 4-million-barrel draw a week before that: a mixed picture that does not help particularly in any attempt to gauge the immediate future of oil prices.

The EIA also reported a 3.7-million-barrel rise in gasoline inventories for the eek to May 17 and a 800,000-barrel rise in distillate fuel inventories. These compared with a 1.1-million-barrel draw in gasoline inventories a week earlier and a 100,000-barrel increase in distillate fuel inventories a week earlier.

In terms of production, refineries churned out 9.9 million bpd of gasoline last week, unchanged on a week earlier. Distillate fuel production averaged 5.2 million bpd, which compared with 5.3 million bpd in the previous week.

Average processing rates in the last week before Memorial Day and the official start of driving season stood at 16.6 million barrels daily, which compared with 16.7 million bpd a week earlier.

In the coming weeks and months demand for gasoline should rise although last year’s driving season served an unpleasant surprise to those expecting a major pick-up in demand. This year we might see a similar trend as [prices at the pump remain relatively high on the OPEC+ cuts and the rising tension in the Middle East. Related: OPEC+ Top Priority: Don’t Crash Oil Prices

Yet not all analysts believe the status quo is a stable one. While some analysts and investment banks are once again talking about Brent crude hitting US$80, US$90, or even US$100 a barrel, compared to the current level of around US$72 per barrel, others, namely JP Morgan, beg to differ.

Scott Darling, head of Asia Pacific oil and gas research at JP Morgan, told CNBC earlier this week the geopolitical risk premium to benchmarks was a short-term affair and the stable rise in U.S. oil production would eventually undermine its effect on prices.

At the time of writing, Brent was trading at US$71.87 a barrel, with West Texas Intermediate at US$62.59 a barrel, both down from opening.

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 Salameh on May 22 2019 said:
    Without fail every time oil prices show signs of rising, the US Energy Information Administration (EIA) and or API come out with announcements about a crude oil or products inventory build. I am surprised that oil traders still believe in them.

    Such announcements have become part and parcel of US manipulation of oil prices. Still, their impact on oil prices is very short-lived. Soon oil prices will resume their upward trend underpinned by robust fundamentals of the global oil market, China’s thirst for oil continuing unabated with its oil imports projected to reach 11 million barrels a day (mbd) or even higher this year.

    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