• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours The United States produced more crude oil than any nation, at any time.
  • 6 days e-truck insanity
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 6 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 9 days Bankruptcy in the Industry
China Exports Gasoline Using Blockchain In Unprecedented Move

China Exports Gasoline Using Blockchain In Unprecedented Move

China’s Sinochem Energy Technology Co has…

The EU Allows Members to Ban Russian LNG as Imports Climb

The EU Allows Members to Ban Russian LNG as Imports Climb

The European Parliament approved rules…

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 Prices Collapse As The EIA Reports Unexpected Inventory Build

Eagle Ford

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

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





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




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News