• 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
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Does Toyota Know Something That We Don’t?
  • 5 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
  • 14 hours America should go after China but it should be done in a wise way.
  • 5 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.
  • 5 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 4 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 5 days Putin and Xi Bet on the Global South
  • 5 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 6 days United States LNG Exports Reach Third Place
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine

API Reports Small Crude Draw As Oil Prices Close Lower

The American Petroleum Institute (API) has reported a 2.418-million-barrel draw on U.S. crude inventories, compared with the previous week’s 6-million-barrel draw, as oil prices slip on China growth concerns.  

Analysts tracked by Investing.com were expecting the Energy Information Administration (EIA) to report an inventory draw of nearly 2.3 million barrels on Wednesday. 

Oil prices were slipping slightly on Tuesday ahead of API data, with Brent trading down 0.46% at $84.07 at 3:35 p.m. ET, while WTI was trading down 0.58%, at $80.25 per barrel. 

Brent closed the day settling down 43 cents, with WTI’s October contract settling down 48 cents. 

Bearish sentiment has risen this week partly on U.S. inventory expectations, but also on U.S. refinery maintenance, which slows refinery demand, and a slowdown in Chinese imports. 

Chinese economic data has continued to weigh on oil prices, with Beijing’s rate cut earlier this week failing to ease demand jitters. Additionally, JP Morgan is expecting slowing demand for “mobility fuels” in China. Major banks continue to slash China growth forecasts. 

"Saudi and Russian output cuts have been largely negated by weakening crude demand from China that appeared to develop last month and is apt to continue through the rest of the summer," Jim Ritterbusch, president of Ritterbusch and Associates LLC in Galena, Illinois, was quoted as saying by Reuters. 

Last week, the EIA reported an inventory draw of 6 million barrels for the week to August 11, compared to the previous week’s 5.9-million-barrel build, despite the fact that refiners had boosted run rates and exports were soaring, with U.S. oil output at its highest level since COVID. 

ADVERTISEMENT

In other words, the 6-million-barrel draw countered the similar-volume build, lending some bullishness and making this week’s inventory data more poignant. 

By Julianne Geiger for Oilprice.com



Join the discussion | Back to homepage



Leave a comment
  • Fred Gosling on August 22 2023 said:
    The draw of 2.4MB is not much info without knowing the changes in gasoline and distillate inventories. F.G. 8/22/23

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