• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 2 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 2 hours The EU Loses The Principles On Which It Was Built
  • 42 mins Crude Price going to $62.50
  • 6 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 11 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 11 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 11 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 6 hours Why hydrogen economics is does not work
  • 13 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 19 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 19 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 17 hours Saudi Aramco IPO Seems Unlikely
  • 3 hours < sigh > $90 Oil Is A Very Real Possibility
Alt Text

The Real Reason Behind The Next Oil Squeeze

An oil supply squeeze may…

Alt Text

Exxon’s Shocking Supply And Demand Predictions

Exxon has a announced some…

Alt Text

Is A Supply Crunch In Oil Markets Inevitable?

Several energy agencies and forecasters…

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 Spikes After EIA Reports Significant Draw To Gasoline Stocks

Permian Drillers

The Energy Information Administration reported a 1.4-million-barrel increase in crude oil inventories for the week to July 29, with the total reaching 522.5 million barrels. Yet again, this official data was in stark contrast with API estimates released yesterday.

Yesterday, the American Petroleum Institute injected some vigor into the market, reporting a draw of 1.3 million barrels for the last week of July. The figures were largely in line with expectations.

On a brighter note, however, the EIA said gasoline stockpiles fell by 3.3 million barrels last week, but distillate inventories went up by 1.2 million barrels. The agency noted gasoline stockpiles remain at an unusual high for the season. API had reported a 450,000-barrel draw in gasoline and a half-a-million-barrel buildup in distillate fuel.

Last week, the EIA reported an increase in petroleum stocks of 1.7 million barrels, which weighed on crude prices significantly, especially coupled with the build in gasoline stockpiles, which added fuel to fears that market fundamentals were far from rebalanced.

Refinery throughout was 16.9 million bpd in the week to July 29, which is an increase of 266,000 bpd on average for the week. The average operating rate was 93.3%. Gasoline production inched down to 10 million bpd, and distillate output rose to 4.9 million bpd.

Market sentiment has been increasingly bearish, with OPEC’s number one Saudi Arabia continuing to pump crude at record-high rates, despite a 40,000-barrel production decline over the month of July. Overall, OPEC output lost 80,000 bpd last month, thanks to more pipeline attacks in Nigeria and persistent production problems in Libya.

Crude did get a bit of a breather last Friday, when Baker Hughes reported just one new rig added to the total oil and gas count in the U.S. This was the fifth week of increases in a row, but the rate of increase had slowed significantly, which was the cause for an uptick in optimism.

U.S. crude inventory data has led to significant oil price volatility in recent weeks, with prices responding immediately to data based on fears that U.S. producers will feed the glut and send prices plummeting further.

WTI today opened at US$39.63 on Nymex, buoyed somewhat by the API data. Moments before EIA published the data, WTI was trading at $40.01, but at the time of writing, WTI had risen to US$40.22, after much volatility.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Paul on August 03 2016 said:
    Speculators made up today's price, +4%.
    Gasoline stockpiles fell by 3.3 millions because there is No Demand for it in August!!!
    Who needs gasoline stockpiles while Demand is going Down! Driving season is Finished.
    Refineries are simply Preparing for Planned August Maintenance.
    It's amazing how Speculators made of it such a Big Deal.
    You will see More Increase in Crude Oil next week.
  • Adrian on August 04 2016 said:
    These shifts are so tiny.

    Expressed as "hours of US demand", gasoline stocks decreased by 12 hours, and crude inventories expanded by 90 minutes.

    Not sure how that translates to a 4.5% jump in futures prices, but that's how much we were up at one point...

Leave a comment




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