• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 1 min Which producers will shut in first?
  • 2 hours The Most Annoying Person You Have Encountered During Lockdown
  • 5 hours Its going to be an oil bloodbath
  • 18 hours We are witnesses to the end of the petroleum age
  • 1 hour Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 25 mins Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 23 hours Breaking News - Strategic Strikes on Chinese Troll Farms
  • 1 hour How to Create a Pandemic
  • 8 hours Wastewater Infrastructure Needs
  • 33 mins Saudi Arabia Can't Endure $30 Oil For Long
  • 21 hours A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 22 hours >>The falling of the Persian Gulf oil empires is near <<
Alt Text

Oil Price War: Is It Game Over For Trump?

As the U.S. government tries…

Alt Text

Oil Markets Are On The Brink Of Armageddon

The coronavirus severely affected the…

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

Oil Markets Unimpressed By Small Crude Build

A day after the American Petroleum Institute reported an inventory build that some traders took as a surprise and started selling their oil holdings, the EIA confirmed a build, at 1.9 million barrels for the week to September 21. Prices, however, did not react particularly strongly amid a flurry of other news coming in.

For starters, the U.S. special envoy for Iran told the UN that Washington will make sure there will be enough oil to go around when sanctions against Iran kick in after November 4. This weighed on prices a little. Meanwhile, the EU announced a plan to continue buying Iranian crude via a special-purpose vehicle for barter transactions. The news was bearish for oil, but some analysts expressed skepticism about the efficiency of the mechanism on the grounds that the U.S. could simply expand the scope of the sanctions to include barter deals between the EU and Iran.

Amid all this, the EIA’s report that U.S. refineries processed 16.5 million barrels daily last week—a considerable reduction from a week earlier—and produced 9.8 million bpd of gasoline and 5 million bpd of distillate is likely to have a largely local effect, affecting West Texas Intermediate.

As refinery maintenance season begins to be felt, stockpiles are bound to rise whatever demand expectations traders might have. Last week, gasoline stockpiles added 1.5 million barrels while distillate inventories went down by 2.2 million barrels. This compares with a 1.7-million-barrel draw for gasoline inventories a week earlier and an 800,000-barrel build for distillate inventories.

A Bloomberg report argued today that if President Trump fails to convince OPEC to increase production to make up for the lost supply from Iran, he has another card up his sleeve: the U.S. Strategic Petroleum Reserve. Opinions on the effectiveness of this move, however, differ. While some, such as Citi’s Ed Morse, suggests that an SPR sale could “knock a couple of bucks off the oil price,” others, such as Hess Corp’s Greg Hill are skeptical: “It won’t drop oil from $80 to $65, and any effect would be short-term.”

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