• 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
  • 36 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Does Toyota Know Something That We Don’t?
  • 4 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 1 day World could get rid of Putin and Russia but nobody is bold enough
  • 7 hours America should go after China but it should be done in a wise way.
  • 4 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 3 days China is using Chinese Names of Cities on their Border with Russia.
  • 4 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 3 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 4 days Putin and Xi Bet on the Global South
  • 4 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 5 days United States LNG Exports Reach Third Place
  • 5 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine

Breaking News:

Chicago Files Suit Against Big Oil

Warm Winter Drags U.S. Natural Gas Prices to Three-Decade Low

Warm Winter Drags U.S. Natural Gas Prices to Three-Decade Low

Warmer-than-average winter temperatures in the…

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

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.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





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




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