X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 4 hours America Makes Plans to Produce Needed Rare Earth Minerals Domestically
  • 1 day Texas Supply Chain Massacre
  • 7 hours U.S. Presidential Elections Status - Electoral Votes
  • 1 day Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 1 day Former BP Exec "Biden not in war against oil" . . Really ?
  • 16 hours Here we go - again: plug-in hybrids cost motorists more than what they were told
  • 3 days Speaker Pelosi, "Tear Down This Wall" . . around Capital Building
  • 3 days Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 19 hours An exciting development in EV Aviation: Volocopter
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 Soar On Huge Inventory Draw

A day after yet another bullish oil inventory estimate from the American Petroleum Institute, the Energy Information Administration reported another solid decline in inventories, which added fuel to the price rally.

The EIA said crude oil inventories had shed 8.5 million barrels in the week to July 26, to a total 436.5 million barrels, which was at the five-year average for this time of the year.

This compares with a 10.8-million-barrel inventory draw a week previously that helped WTI move a lot closer to the US$60 mark in combination with other factors, chief among them geopolitical concerns focused on the Middle East.

Analysts had expected the EIA to report an inventory decline of 1.82 million barrels for the week to July 26.

The EIA went on to report a 1.8-million-barrel decline in gasoline inventories for last week. This compares with a 200,000-barrel decline in inventories a week earlier.

In distillate fuels, the authority reported a 900,000-barrel fall, which compared with an increase of 600,000 bpd a week earlier.

In production, the EIA reported an average gasoline production rate of 10.4 million bpd for last week, up from 10.1 million bpd a week before that. Distillate fuel production averaged 5.2 million bpd, slightly down on a week earlier. Related: Tesla Just Lost Its Chief Innovator

Refineries processed a total of 17 million barrels daily last week, unchanged on a week earlier.

Oil prices have been trending higher over the past week or so mainly on the back of updates from the Middle East that suggest tensions between the West and Iran are not going away anytime soon. The latest, out yesterday, was a statement by the commander of Iran’s Navy that it will hold joint military drills with the Russian Navy in the Persian Gulf.

The announcement comes as the UK seeks to create a united European fleet to send to the Gulf to guard vessels from the Iranian Islamic Revolutionary Guard Corps after the latter seized British-flagged Stena Impero earlier this month.

At the time of writing, Brent crude was trading at US$65.09 a barrel, with West Texas Intermediate at US$58.39 a barrel, both up from yesterday’s close.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on July 31 2019 said:
    Don’t hold your breath. The announcement by the US Energy Information Administration (EIA) of another hefty decline in crude inventories will be followed within a few days by a much bigger rise in crude or product inventories or both.

    Both the EIA and the American Petroleum Institute (API) have become very adept at
    oil price manipulation by announcing steep declines in inventories when prices are declining to be followed by much steeper build in inventories when oil prices start to surge.

    This practice serves two goals. One is to give the EIA a semblance of credibility. The other is to dampen oil prices the minute they start to surge.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




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