• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 49 mins Is $60/Bbl WTI still considered a break even for Shale Oil
  • 6 mins Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 10 hours Prosecutors Fine Bosch 90 Million Euros For Emissions Cheating Role
  • 1 hour Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 11 hours Apple Boycott in China
  • 1 hour Asia Oil Refiners Mull Run Cuts With Margins At 16 yrs. Low For Season
  • 27 mins Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 5 hours Devastating Sanctions: Iran and Venezuela hurting
  • 48 mins IMO 2020 could create fierce competition for scarce water resources
  • 49 mins IMO2020 To scrub or not to scrub
  • 9 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 7 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 10 hours California's Oil Industry Collapses Despite Shale Boom
U.S. Oil Rig Count Dips To 14-Month Low

U.S. Oil Rig Count Dips To 14-Month Low

The the number of active…

Bullish API Data Prevents Oil From Falling Further

Eagle Ford shale

The American Petroleum Institute (API) reported a healthy draw of 4.2 million barrels in United States crude oil inventories, compared to analyst expectations that markets would see a bit of relief with a crude oil draw of 2.2 million barrels for the week ending April 28.

Gasoline inventories fell by 1.9 million barrels, according to the API. Crude oil draw or no, gasoline inventories are still a worry. While crude oil has experienced an overall drawdown over the last couple of weeks, gasoline inventories have been on the rise. While a 1.9-milllion barrel draw is a bit of a relief, it comes after the API reported a 4.4-million-barrel build for the fuel last week. A day later, the EIA reported it was a 3.37-million-barrel build.

Still, it’s not as bad as what analysts were predicting for gasoline this week—a 1-million-barrel build for gasoline.

The rebalancing act between crude oil and gasoline inventories is the result of refiners taking advantage of the plentiful—and cheap—crude oil. So while US crude oil is indeed drawing down—albeit not enough—it’s simply being refined, and accumulating.

(Click to enlarge)

According to the EIA, gasoline inventories have climbed almost 5 million barrels in the last two weeks ending April 21.

Distillate inventories fell this week by 436,000 barrels, and inventories at the Cushing, Oklahoma site feel by 215,000 barrels.

This week’s API report comes as oil prices fell to new lows earlier today, as hedge fund and money managers raced to exit their bullish positions in record numbers as US futures slipped below last week’s low earlier in the day. Over 50,000 US contracts traded within five minutes after prices dipped below that line, as markets grow increasingly skeptical that the stubborn oil inventories will soon give way. Further pressing on prices was the news that Libyan production—which is exempt from the OPEC production agreement—came back online and Friday’s rig count that showed US shale drillers are still putting more rigs into play.

Related: Oil Prices Head Lower As Libyan Production Rebounds

At 3:40pm EST, WTI was trading down over 2% on the day, well below the $50 mark at $47.59. Brent Crude was trading at $50.38. Brent Crude hit a low early on Tuesday of $50.14—the lowest point this year.

 

(Click to enlarge)

Gasoline was trading down at $1.51 at 3:40pm EST—down 10 cents or almost 7% from last Tuesday.

By 4:50pm EST, both WTI and Brent Crude had picked up slightly and were trading at $47.96 and $50.79 respectively.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News