• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 3 hours Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 14 hours EU to Splash Billions on Battery Factories
  • 18 hours U.S. Shale Oil Debt: Deep the Denial
  • 1 day The Balkans Are Coming Apart at the Seams Again
  • 10 hours Owning stocks long-term low risk?
  • 13 hours The Dirt on Clean Electric Cars
  • 20 mins Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 1 day 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
Alt Text

Why Crypto Miners Are Paying Attention To The Permian

The Permian is literally burning…

Alt Text

What Killed The Oil Price Rally?

A bearish report from the…

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 Slips And Bounces Back After EIA Reports Significant Builds Across The Board

Distillate tanks

Amid growing bearish sentiment towards oil prices, the Energy Information Administration reported a build of 4.1 million barrels in crude oil inventories for the week to January 6, a day after the American Petroleum Institute had estimated inventories were 1.5 million barrels higher in the period.

Analysts had expected EIA to report a build of 930,000 barrels. Last week, the agency reported a weekly decrease of 7.1 million barrels, injecting some optimism into markets but not for long as doubts about the OPEC production cut deal deepen.

According to EIA, commercial crude oil inventories as of January 6 stood at 483.1 million barrels, within seasonal limits, near the upper end.

Refineries operated at 93.6 percent of capacity, processing 17.1 million barrels of crude and producing 9.7 million barrels of gasoline and 5.3 million barrels of distillate daily.

Gasoline inventories for the period were 5 million barrels higher than in the previous week, after an 8.3-million-barrel build in the last week of 2016.

Crude oil imports in the seven days to January 6 stood at 9.1 million barrels daily, up from a daily import rate of 7.2 million barrels in the week before.

EIA’s figures are unlikely to reverse the slow but steady slide that we’ve been seeing since the start of this week. Among the factors weighing down on international prices, besides the worry about the OPEC deal, are also expectations for higher output from the U.S. shale patch, which would further dampen optimism about an end to the global glut. Related: India’s 2016 Oil Demand Jumps 11% To Record Highs

Despite reports about OPEC members and non-OPEC producers starting to implement the agreed cuts to their output, doubts about how long this compliance will last remain and grow, especially after it emerged that Iraq, the cartel’s second-largest producer, plans to raise oil exports in February.

At the same time, shale producers are rushing to raise production, using the price rally while it lasts, not least because of their often substantial debt burdens. The way things are going, the rally is unlikely to continue for very long unless a radical new change occurs.

At the time of writing, WTI was trading at US$51.44 a barrel and Brent was changing hands at US$54.37 a barrel.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment
  • jman57 on January 11 2017 said:
    This report proves that OPEC is already cheating on their hyped-up "deal" on the first week! Why is oil rising on this report? Pure manipulation and deceit.

Leave a comment




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