• 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
  • 4 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 4 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 3 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 3 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 5 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 4 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 5 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 20 hours Itt looks like natural gas may be at its lowest price ever.
  • 6 hours Saudi A to Splash $100 Bln on India
  • 23 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 2 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 14 hours NEW FERUKA REFINERY
  • 8 hours Washington Eyes Crackdown On OPEC
Alt Text

Permian Production To Break 4 Million Bpd In March

Permian oil production is set…

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

Oil Prices Collapse As The EIA Reports Unexpected Inventory Build

The Energy Information Administration poured ice cold water on the budding hope that inventory levels in the world’s largest oil consumer may be normalizing, by reporting a 3.3-million-barrel build in commercial stockpiles for the week to June 2.

That happened a day after the API reported a draw of 4.62 million barrels, with analysts expecting the API to report a draw of 3.5-million barrels for last week—but even with expectations for another draw in inventories, prices failed to show any significant enthusiasm, jumping briefly before sagging down again on Tuesday. EIA’s figures will likely strengthen the downward trend.

The EIA reported that at 513.2 million barrels, crude oil inventories were within seasonal limits, however, with refineries processing over 17.2 million barrels of oil daily. Gasoline output averaged 9.9 million barrels per day, down from 10.4 million bpd in the week before. Gasoline inventories ahead of the start of driving season were also up, by 3.3 million barrels, bucking a two-week upward streak.

Imports averaged 8.3 million barrels daily, up by 356,000 bpd from the previous week, but we may see declines in the coming weeks after Saudi Arabia announced its plans to cut shipments to one of its biggest clients as it continues to shrink output in line with the recently extended OPEC-wide production cut agreement. Related: Is $75 Oil Still Possible?

Oil prices fell off a cliff following the report

Meanwhile, amid rising tensions in the Middle East after Saudi Arabia, Egypt, the UAE, and Bahrain severed all diplomatic ties with the world’s top LNG exporter Qatar over allegations of the emirate supporting terrorism, another event shook the region: two terrorist attacks on the Iranian parliament and the mausoleum of Ayatollah Khomeini in Tehran left 12 dead and a lot more injured. Islamic State took responsibility for the attacks.

Several hours after the news broke, Brent and WTI were both down, which highlights how difficult OPEC’s situation has become, with little hope that global supply will decline in any meaningful way anytime soon, especially after it turned out that the cartel’s May output rose for the first time this year, on the back of recovering production in Nigeria and Libya.

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
  • Disgruntled on June 07 2017 said:
    I guess the API number doesn't count for anything. Only the illustrious EIA speaketh the Truth.
  • Bobby on June 12 2017 said:
    It is worth noting the inventory dates for import/export have been manipulated. EIA will show huge draw this week.

Leave a comment




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