• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 2 hours Shale Oil will it self destruct?
  • 5 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 23 hours Excellent Choice: Germany's Von der Leyen Secures Powerful EU Executive Top Job
  • 5 hours Today in Energy
  • 4 hours Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 4 hours Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 3 hours Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 15 hours Washington Post hit piece attacking oil, Christians and Trump
  • 22 hours Migration From Eastern Europe Raises German Population To Record High
  • 1 day White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 1 day A Silence is heard
  • 1 day Germany exits coal: A model for Asia?
  • 2 days South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%

Breaking News:

Eni’s Oil Tanker Fiasco

Alt Text

Mexico Confirms Major Tax Cut For PEMEX

Mexican President Lopez Obrador presented…

Alt Text

The Energy Storage Industry Is Exploding

The energy storage industry is…

Alt Text

China’s Refineries Hit New All-Time Operating Record

Chinese crude oil throughput hit…

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

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


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
Download on the App Store Get it on Google Play