• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 4 hours OPEC will consider all options. What options do they have ?
  • 4 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 1 hour Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 9 mins NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 7 hours What to tell my students
  • 4 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 5 hours China Threatens to Withhold Rare Earth Metals
  • 11 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 7 hours With Global Warming Greenland is Prime Real Estate
  • 20 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 19 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 16 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 21 hours Flaring is at Record Highs in Texas
Alt Text

A Limited Risk Play In A Shaken Market

Recession fears tanked stock markets…

Alt Text

U.S. Sanctions Backfire, Lead To Boost In Russian Oil Exports

U.S. sanctions against Venezuela and…

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

EIA Boosts Bullish Oil Sentiment With 7.1-Million Barrel Draw

In its first crude oil inventory report for the year, the EIA said commercial stockpiles stood at 479 million barrels, a draw of 7.1 million barrels from its last reported figures, a week ago.

Yesterday, the American Petroleum Institute, whose estimates are often in contrast with EIA’s official figures, reported a draw of 7.4 million barrels, against analyst expectations for a decline of 1.7-22 million barrels of crude. This week, however, API and EIA figures were in tune.

In its last weekly report for 2016, the EIA failed to impress, with a build of 614,000 barrels for the week to December 30.

For the last week of 2016, EIA reported an average daily refinery throughput of 16.7 million barrels of crude, with gasoline production at 9.5 million barrels, down from the previous week’s 10.5 million barrels.

Gasoline inventories in the seven days to December 30 were up by 8.3 million barrels, with demand apparently slacking off as winter sets in in large parts of the U.S.

Oil imports for last week stood at 7.2 million bpd, compared with 8.2 million bpd in the previous week, when imports registered a 304,000-bpd decline.

The start of the year has not been particularly good for oil prices, with both Brent crude and West Texas Intermediate (WTI) sliding down after hitting a multi-month high at the end of 2016.

Doubts about the compliance of OPEC and non-OPEC parties to the much-hyped production cut agreement that is supposed to rebalance oil’s fundamentals are growing. Related: 2017 – A Quiet Year For Oil?

With three OPEC members clearly intending to expand production as fast as they can – Libya, Nigeria, and Iran – and with U.S. producers eager to ramp up their production as well, to benefit from the higher prices, it’s only to be expected that the rally won’t last.

EIA’s figures, if they are impressive enough, can usually swing the market and this is what is likely to happen this week, after WTI and Brent both already benefited from API’s report. However, the price increase is expected to be subdued as a result of huge builds of gasoline and distillates stockpiles.

Brent recouped earlier losses yesterday and jumped above US$55 a barrel and WTI climbed over US$53, but how long this rally will last is questionable, even though EIA’s figures are in tune with API’s.

At the time of writing, WTI was trading at US$53.85 a barrel and Brent crude was at US$57.06 a barrel.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




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