• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 18 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 17 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 18 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 17 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 18 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 19 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 19 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 2 days Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day Itt looks like natural gas may be at its lowest price ever.
  • 20 hours Saudi A to Splash $100 Bln on India
  • 13 hours Washington Eyes Crackdown On OPEC
  • 15 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day NEW FERUKA REFINERY
Alt Text

The 30 Most Exciting Wildcat Plays Of 2019

As E&Ps are stepping up…

Alt Text

MIT Professors: This Is The Energy System Of The Future

Thanks to continuously declining costs,…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Bullish EIA Inventory Data Boosts Crude Prices

Amid increasingly stronger signals from OPEC that the production cut extension will be extended into the second half of 2017 and even beyond that, the EIA reported a draw in crude oil inventories of 5.2 million barrels for the week to May 5.

A day earlier, the American Petroleum Institute had reported the largest draw in inventories since January, at 5.789 million barrels, failing, however, to instill much optimism in a consistently pessimistic market. The EIA’s confirmation of the size of the draw should have a bigger impact on prices.

The EIA’s gasoline inventory figures were also much more optimistic than the API’s: they fell by 200,000 barrels, while the API reported these at 3.17 million barrels more than the previous week.

In the previous week, the authority calculated gasoline inventories had risen by 200,000 bpd, with a build of 3.4 million bpd in the previous week, and 1.5 million bpd in the week to April 14. This makes last week the first in a month to see a decline in the stockpiles of the most popular fuel ahead of the start of driving season.

Refinery runs, according to the EIA, averaged 16.8 million barrels per day in the week to May 5, down from 17.2 million bps in the previous week. Gasoline production averaged 10.1 million bpd, from 9.8 million bpd in the week before. Related: Production Cuts vs Innovation – Why OPEC Has Lost The Oil Price War

The general feeling that the world is still awash in crude thanks to U.S. shale producers seems persistent enough not to be bucked by anything reported by the EIA, although a major draw in both crude oil and gasoline inventories might do the trick for a while.

Some industry observers are of the opinion that a simple extension of the OPEC cuts will sufficiently prop up oil prices. They argue that OPEC and its partners in the deal should cut deeper. However, it is doubtful how ready these producers would be to risk losing further market share.

Yet, ready or not, shale producers are raising their drilling budgets this year, in yet another clear signal that output growth will continue and even intensify. The results of these higher budgets will become evident in 2018, which is why the EIA is forecasting average daily production of almost 10 million bpd in 2018.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News