• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 4 hours Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 3 hours Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 9 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 7 hours Apology Accepted!
  • 10 hours U.S. natural gas at major disadvantage in Europe and China.
  • 11 hours Biden came out of his basement today (Thursday) and said , "we have 120 Million deaths from Covid 19.
  • 10 hours Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 11 hours Putin Paid Militants to Kill US Troops
  • 16 hours CoVid in Spain, 9 months before China
  • 12 hours The Political Genius of Donald Trump
  • 15 hours Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
  • 16 hours The world is headed for big problems - interview with very smart economist
  • 20 hours Why Oil could hit $100

Breaking News:

OPEC Production Falls To Three Decade Low

Chinese Oil Majors Could Form A Powerful Buyers Club

Chinese Oil Majors Could Form A Powerful Buyers Club

China’s state-owned oil companies—Sinopec, CNOOC,…

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 Rises To 8-Week High Following Unexpected U.S. Inventory Draw

After a somewhat weak start to the Thursday session, oil prices rose to eight-week highs by noon, boosted by a stronger-than-expected inventory draw in the U.S. and pledges by leading producers in the Middle East that they would cut supplies to the global market in earnest.

At 12:40pm, WTI Crude was up 0.88 percent at US$49.18, while Brent Crude was trading up 1.20 percent at US$51.58 – price levels not seen since the first week of June.

Yesterday, the EIA once again helped to lift oil market spirits by reporting another hefty decline in U.S. commercial crude oil inventories for the week ending July 21. A day after the American Petroleum Institute estimated inventories had declined by a generous 10.23 million barrels—the largest draw of the year according to the API—the EIA said crude oil inventories diminished by 7.2 million barrels, to 483.4 million barrels. The EIA had reported hefty inventory draws in the last three weeks as well.

Earlier this week, Saudi Energy Minister Khalid al-Falih indicated that OPEC’s de facto leader and biggest producer Saudi Arabia would cut its crude exports to just 6.6 million barrels per day next month. Kuwait and the UAE followed suit, and also pledged curbs in exports.

Commenting on the possibility for oil prices to recover, Stephen Brennock at oil brokerage PVM told Reuters on Thursday:

“As encouraging as this may seem, the price recovery won’t begin in earnest until evidence of U.S. oil rebalancing is mirrored on a global scale.”  

Achieving rebalancing of the global market has been the mantra of OPEC since it decided to collectively reduce production. But the price gains immediately after the deal was announced encouraged U.S. shale producers to increase production. In addition, Libya and Nigeria started recovering their production, crippled by civil strife and militant violence, pushing the rebalancing of the market further down the road.

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