• 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
  • 24 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days If hydrogen is the answer, you're asking the wrong question
  • 14 hours How Far Have We Really Gotten With Alternative Energy
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Large Crude Inventory Build Erases Tuesday’s Price Gains

The American Petroleum Institute (API) estimated on Tuesday a larger than anticipated crude oil inventory build of 6-million barrels for the week ending February 7, compared to analyst expectations of a 2.987-million-barrel build in inventory.

Last week saw a larger than expected build in crude oil inventories of 4.18-million barrels, according to API data. The EIA’s estimates were for a slightly smaller build of 3.4-million barrels for that week.

Oil prices were trading slightly up in the afternoon hours, but hardly much of a recovery given the brutal price slide that the oil markets have experienced over the last month as the coronavirus continues to stifle economic activity and threaten oil.

At 3:34 pm EST on Tuesday the WTI benchmark was trading up on the day by $0.16 (+0.32%) at $49.73—but still down slightly week on week. The price of a Brent barrel was also trading up on Tuesday, by $0.64 (+1.20%), at $53.91—but still off around $0.40 from last week.

Overall, the benchmarks have slid more than $14 per barrel since the first week of the year.

The API this week also reported a build of 1.1 million barrels of gasoline for week ending February 7, after last week’s 1.96-million-barrel build. This week’s large gasoline build compares to analyst expectations of a 546,000-barrel-build for the week.

Distillate inventories were down by 2.3 million barrels for the week, compared to last week’s 1.78-million-barrel draw, while Cushing inventories rose by 1.3 million barrels.

US crude oil production as estimated by the Energy Information Administration showed that production for the week ending January 31 slipped slightly to 12.9 million bpd off just 100,000 bpd from an all-time high.

ADVERTISEMENT

At 4:42 pm EDT, WTI was trading at $50.02, while Brent was trading at $54.25.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Patrick Me on February 11 2020 said:
    Groan, again (as is usual here) the title is grossly misleading. Grossly.
    Again the author sensationalizes what she hopes or expects will be the price reaction associated with a reported build.
    Just stick to reporting facts and don't project your fantasy pricing scenario please.
  • Dave M on February 11 2020 said:
    The article states "Huge Crude Inventory Build Erases Tuesday’s Price Gains" yet the details in the article state,

    #1
    At 3:34 pm EST on Tuesday the WTI benchmark was trading up on the day by $0.16 (+0.32%) at $49.73

    followed by

    #2
    At 4:42 pm EDT, WTI was trading at $50.02


    Maybe the news articles should follow the same review as comments awaiting fact checks or reviews?

    It seems to undermine the site integrity.
  • Patches Hooligan on February 11 2020 said:
    Once again Julianne tries desperately to create fear through her use of article titles. I've never seen a reporter so obviously bearish on oil.

    Fact 1: WTI was trading at 50.0 moments before the API release.
    Fact 2: up until 1 hour later, WTI only dipped 10 cents.

    Where does she get off saying this build erased gains? The gains were already erased hours before this news.

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