• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 3 hours Its going to be an oil bloodbath
  • 52 mins Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 2 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 2 hours Marine based energy generation
  • 3 hours Cpt Lauren Dowsett
  • 2 hours The Most Annoying Person You Have Encountered During Lockdown
  • 4 hours Which producers will shut in first?
  • 27 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 13 hours CDC covid19 coverup?
  • 3 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 4 hours Washington doctor removed from his post, over covid
  • 13 hours How to Create a Pandemic
  • 13 hours Iran-Turkey gas pipeline goes kaboom. Bad people blamed.

Breaking News:

IEA: OPEC Can’t Save The Oil Market

Alt Text

Oil Prices Could Fall Another 20%

Oil prices have tumbled as…

Alt Text

Coronavirus Could Derail The Electric Vehicle Revolution

The coronavirus pandemic is beginning…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Price Drops As U.S. Crude Build Outweighs Venezuela Turmoil

Oil prices dropped early on Wednesday after the API reported on Tuesday a surprise U.S. crude build that outweighed earlier bullish news of a coup attempt in Venezuela and Saudi Arabia hinting that the OPEC+ pact could be extended in some form through the end of this year.

As of 08:58 EDT on Wednesday, before the EIA weekly inventory report, WTI Crude was down 0.75 percent at $63.43 while Brent Crude traded down 0.33 percent at $71.82.

Oil rallied early on Tuesday after Saudi Arabia’s Energy Minister Khalid al-Falih said in an interview with Russian news agency RIA Novosti that the OPEC+ production cut deal could be extended by the end of the year from its current expiry date of June 2019. Al-Falih, however, reiterated that it’s too early to project details about production levels and quotas.

Also on Tuesday, oil prices were supported by the escalation of the situation in OPEC member Venezuela, where the opposition leader Juan Guaidó, along with some factions of the military, staged an attempted to overthrow Nicolas Maduro.

These two bullish factors were wiped out later in the day on Tuesday, when the American Petroleum Institute (API) reported a surprise build in crude oil inventory of 6.81 million barrels for the week ending April 26, coming in over analyst expectations of a 2.093-million-barrel buildup in inventories.

“The bigger-than-expected stock build has weighed on the market, which saw a reversal of much of yesterday’s gains following comments from the Saudi oil minister that OPEC+ could continue with their deal through until the end of this year, whilst the market also largely ignored the growing unrest in Venezuela,” Warren Patterson, Head of Commodities Strategy at ING, said on Wednesday.  

Referring to Venezuela, ING believes that “While a change in regime could mean increased oil output in the longer term, it could also mean short- to medium-term disruptions, while we believe it will not be a quick fix to turn the state of the domestic oil industry around even with a new regime.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




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