• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 2 hours Prospective Cause of Little Ice Age
  • 4 hours L.A. Mayor Ditches Gas Plant Plans
  • 22 mins Why Trump will win the wall fight
  • 4 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 5 hours students walk out of school in protest of climate change
  • 20 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 1 day Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 6 hours Maduro Asks OPEC For Help Against U.S. Sanctions
  • 21 hours Ford In Big Trouble: Three Recalls In North America
  • 2 days Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 21 hours Why Is Japan Not a Leader in Renewables?
Alt Text

A New Twist In Europe’s Ongoing Gas Drama

New developments in the European…

Alt Text

Rosneft Boss Wants Russia Out Of OPEC Deal

Rosneft’s chief executive Igor Sechin…

Alt Text

Saudi Aramco Makes Existential Bet On Oil

Saudi Aramco has doubled down…

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 Slip Despite Draw In Crude, Gasoline Inventories

A day after Saudi Arabia said it was willing to join a production cut extension and a day after the American Petroleum Institute estimated U.S. crude oil inventories had declined by 1.3 million barrels, the Energy Information Administration joined in the festivities by reporting a 2.2-million-barrel draw in commercial oil inventories for the week to April 7.

Analysts had expected a moderate build of 125,000 barrels, but it’s worth noting that for the last 14 weeks, EIA has only twice reported draws, compared with a combined build of 49.5 million barrels for the period. This is the third draw.

For last week, the agency also reported refineries produced an average daily of 9.9 million barrels of gasoline and 5.1 million barrels of distillate, processing 16.7 million barrels of crude daily after the end of seasonal maintenance.

Gasoline inventories fell by 3 million barrels, further improving the mood.

Oil prices, which hit five-week highs after last week’s U.S.-ordered airstrikes against Syrian infrastructure, followed by production outages from Libya’s largest oilfield, are now at their highest since December, when they got a huge boost from the OPEC historic deal to cut production.

Now, EIA’s figures are sure to provide additional support for benchmarks, reinforcing a bullish sentiment that has been feeding on geopolitical and OPEC developments.

According to OPEC’s latest Monthly Oil Market Report, the group produced 31.93 million barrels of oil daily last month, with Saudi Arabia pumping 9.9 million bpd, according to preliminary insider data, the lowest since January and below its assigned quota of above 10 million bpd.

This rate of compliance, the growing probability of OPEC extending the cut into the second half of the year, and the tense geopolitical situation in the Middle East will keep prices higher for a while longer, it seems—a great opportunity for U.S. shale producers to accelerate their production rates.

(Click to enlarge)

At the time of writing, Brent traded at $56.06 a barrel and WTI traded at $53.30 a barrel.

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
  • Kr55 on April 12 2017 said:
    Shorts turn to try to defend their positions. Very expensive day for them today.

Leave a comment




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