The American Petroleum Institute (API) has estimated a crude oil inventory build of 4.45 million barrels for the week ending October 17—compared to analyst expectations of a 2.232-million-barrel build.
Last week saw a large build crude oil inventories of 10.45 million barrels, according to API data. The EIA’s estimates were similar, reporting a slightly smaller—but still huge—9.3-million-barrel build for that week.
After today’s inventory move, the net draw for the year is now dwindling at 10.82 million barrels for the 43-week reporting period so far, using API data.
Oil prices were trading up on Tuesday prior to the data release on rumors that OPEC will consider making deeper cuts in December to combat what almost everyone predicts will be weak demand growth next year.
At 3:56pm EDT, WTI was trading up $0.79 (+1.48%) at $54.30 per barrel—up $1 week over week. Brent was trading up $0.60 (+1.02%) at $59.56, up roughly $0.20 per barrel week on week.
The API this week reported a draw of 702,000 barrels of gasoline for week ending October 17. Analysts predicted a draw in gasoline inventories of 2.267 million barrels for the week.
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Distillate inventories fell by 3.491 million barrels for the week, while inventories at Cushing rose by 1.988 million barrels.
US crude oil production as estimated by the Energy Information Administration showed that production for the week ending October 11 stayed at 12.6 million bpd for the second week in a row—the highest production level that the United States has seen, and a growing worry in combination with the grim demand growth outlook for 2020.
At 4:40pm EDT, WTI was trading at $54.26, while Brent was trading at $59.56.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.