The American Petroleum Institute (API) reported a crude oil inventory draw of 3.4 million barrels for the week ending Aug 1, compared to analyst expectations of a 2.848-million barrel draw.
The inventory draw this week compares to last week’s large draw of 6.024 million barrels, bringing the net inventory moves for the year into net draw territory, according to API data. A day later, the EIA confirmed an inventory drawdown of 8.5 million barrels.
After today’s inventory move, the net draw for the year is 8.23 million barrels for the 32-week reporting period so far, using API data.
Oil prices were trading down on Tuesday on the China/US trade escalations and signs of the resulting weakening demand growth. The EIA reported on Tuesday that it was revising downward its global oil demand growth for 2019 to 1 million barrels per day.
At 2:40pm EST, WTI was trading down $0.77 (-1.41%) at $53.92—more than $3 off from last week’s price. Brent was trading down $0.59 (-0.99%) at $59.22—almost $5 down on the week.
The API this week reported a 1.1-barrel draw in gasoline inventories for week ending Aug 1. Analysts predicted a draw in gasoline inventories of 722,000 barrels for the week.
Distillate inventories rose by 1.2 million barrels for the week, while inventories at Cushing fell by 1.6-million barrels.
US crude oil production as estimated by the Energy Information Administration showed that production for the week ending July 25 rebounded to 12.2 million bpd, just 200,000 bpd off the all-time high of 2.4 million bpd.
The U.S. Energy Information Administration report on crude oil inventories is due to be released at its regularly scheduled time on Wednesday at 10:30a.m. EST.
By 4:41pm EST, WTI was trading down at $53.75 while Brent traded at $59.04.
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.