• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 15 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 5 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 1 hour CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 1 day NordStream2
  • 4 hours OPEC+ Expects Large Oil Glut In Early 2022
  • 2 hours Ukrainian Maidan after 8 years
  • 4 hours Forecasts for Natural Gas
  • 3 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 1 day Big Bounce: Russian gas amid market tightness - new report by Oxford Institute for Energy Studies
Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

API: U.S. Crude Inventories See Biggest Draw Since 1999

U.S. crude inventories collapsed by 12 million barrels this week, marking the largest inventory draw since January 1999, according to analysis of this week’s American Petroleum Institute inventory report by ZeroHedge.

Brent oil prices had hovered around $47.92 before the API figures became public Wednesday afternoon, which caused the price to spike above $48.54 a barrel within five minutes of the release.

Also, barrel prices for West Texas Intermediate jumped to $46.14 from $45.48 after the weekly numbers were released.

Tomorrow’s Energy Information Administration data will include the government’s official inventory statistics, which do not always jive with the API report’s estimates, adding another layer of volatility to oil prices.

Analysts had expected crude inventories to rise by 905,000 barrels this week, after seeing builds in five of the past six weeks.

ZeroHedge said the massive draw could have been caused by a series of shut-ins at drilling sites in the Gulf of Mexico due to unstable weather conditions. The site cited an incident in 2013 when a 10 million barrel draw occurred as a result of a strong storm.

“We’ll need to see a significant shock to the market to break out of this range over the next several weeks.” Michael Tran, a commodities strategist at RBC Capital Markets in New York told ZeroHedge over the phone before the report was released. It seems the API report provided the shock Tran had hoped for.

According to the report, gasoline reserves fell farther than the expected 750,000 barrels; the inventories saw a deeper 2.4 million barrel draw instead. In contrast, distillate reserves jumped by 944,000 barrels.

Crude reserves in Cushing fell by 700,000 barrels against an expected 900,000 barrel draw.

Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Derek on September 07 2016 said:
    As a former tech analyst, I understand better than most that estimates can, and almost always do, differ from actuals. But, watching oil inventories over the past several months gives me the impression that NO ONE has a clue what's happening in this industry on a week by week (or month by month) basis. The variance between expert estimates and actual is a total joke. Why bother?

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