• 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
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 days Does Toyota Know Something That We Don’t?
  • 3 hours World could get rid of Putin and Russia but nobody is bold enough
  • 5 days America should go after China but it should be done in a wise way.
  • 21 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 25 mins How Far Have We Really Gotten With Alternative Energy
  • 13 days China is using Chinese Names of Cities on their Border with Russia.
  • 22 hours The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 13 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
Kazakhstan Targets Fintech to Boost Revenue and Curb Tax Evasion

Kazakhstan Targets Fintech to Boost Revenue and Curb Tax Evasion

Kazakhstan's government is targeting fintech,…

New Tech Enhances Safety and Performance of Lithium Ion Batteries

New Tech Enhances Safety and Performance of Lithium Ion Batteries

Researchers at Incheon National University…

API Reports Draw In U.S. Crude Inventories After 6-Week Build Streak

This week, the American Petroleum Institute (API) reported a surprise draw of 884,000 in United States crude inventories against expert predictions that domestic supplies would see a 3.3 million-barrel jump. This week’s drop marks the end of a long, six-week streak of crude oil inventory builds.

Zero Hedge’s forecast also predicted a 1.5-million-barrel decrease in gasoline inventories, but the API reported a smaller draw on gasoline inventories of 893,000.

Supplies at the Cushing, Oklahoma facility fell by 1.7 million barrels, while distillates saw a 4.229-million-barrel decline – the largest draw since October 2014.

West Texas Intermediate (WTI) prices jumped up slightly after the report’s release, though at the time of the report’s writing, a barrel traded at $53.90 – $0.43 lower than when markets opened on Wednesday morning.

"We’re expecting the API and EIA to report another supply build,” Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, told Zero Hedge by telephone prior to the report’s release. “The focus is returning to the reality that fundamentally we’re oversupplied."

The Organization of Petroleum Exporting Countries (OPEC) and 11 other nations agreed to cut oil output in first six months of 2017 in order to rebalance international supply and demand, but its effect on oil prices have been somewhat lackluster given the higher inventories in the United States.

While compliance to the deal within OPEC has been high – around 90 percent – outsiders have only been able to make half of their committed cuts a reality.

“The big question is, will the Saudis cut even more to maintain the price,” James Williams, an economist at the Arkansas-based energy research firm WTRG Economics, told Zero Hedge.

ADVERTISEMENT

All eyes will be on the EIA inventory report tomorrow at 10:30EST to see if this week’s crude oil inventory draw is confirmed.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • CC on February 23 2017 said:
    Good report, a little more insightful than just the raw API report. One comment though...weeks starting out with a US Federal Holiday, as this week with President's Day, the EIA oil report is published one day and one-half hour later than the regular weekly report. EIA oil will report this Thursday, 2/23/17, at 11:00 AM ET, following the regular Thursday 10:30 AM NatGas report. Oil normally reports every Wednesday at 10:30 AM ET.

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