• 4 hours Russia Approves Profit-Based Oil Tax For 2019
  • 8 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 10 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 12 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 14 hours Aramco In Talks With Chinese Petrochemical Producers
  • 15 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 16 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 23 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 1 day Keystone Pipeline Restart Still Unknown
  • 1 day UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 1 day Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 1 day Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 7 days Venezuela Officially In Default
  • 7 days Iran Prepares To Export LNG To Boost Trade Relations
  • 7 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
Keystone XL Is Far From Certain

Keystone XL Is Far From Certain

Today’s vote in favor of…

Is This The New Sweet Spot For Shale?

Is This The New Sweet Spot For Shale?

Shale drillers and oil majors…

Oil Continues To Fall After API Reports 1.4M Barrel Build At Cushing

Cushing OK

The American Petroleum Institute reported an 800,000-barrel draw in crude oil inventories for the week to July 22. Strategic inventories at Cushing, Oklahoma, however, were up by 1.4 million barrels. WTI plunged to a three-month low today, before the release of the API figures, to US$42.83 a barrel. Brent crude was trading at US$44.78 at 4.30pm EDT.

Last week, the API reported a 2.3-million-barrel draw in crude oil inventories, a figure later confirmed by the Energy Information Administration.

Analysts expected gasoline inventories to have gone up by 675,000 barrels in the reporting period and distillate fuel stockpiles to have gained 700,000 barrels.

However, a 420,000 barrel draw was reported for gasoline stocks and a 290,000 barrel build in distillates for the week ending July 22.

During the week to July 15, gasoline, according to the API, showed a larger build than had been anticipated, with 800,000 barrels in increased inventories instead of a 500,000-barrel drop. This rattled markets, especially after the buildup was, again, confirmed by the EIA weekly inventory report. Expectations were for a half-a-million-barrel draw in gasoline stockpiles but instead they went up by as much as 911,000 barrels in the reporting period.

There’s been growing worry about the state of oil and fuels fundamentals in the U.S. over the last few weeks as despite the fact that driving season is in full bloom, demand for gasoline has not risen as much as expected.

Earlier this week, Bloomberg warned that the drop in demand for oil and products could still outpace the decline in production, weighing heavily on crude oil prices. As soon as next month gasoline demand is expected to start slowing down as driving season draws to a close and refineries, which as of July 15 were operating at 92.3 percent of capacity, may have to start shutting down for seasonal maintenance earlier, if inventories continue to build up.

As of the writing of this, WTI was trading at US$42.76 a barrel and Brent crude was at US$44.58.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Alex on July 26 2016 said:
    Should this read "...3-month low..." vs. "...3-year low..."?

Leave a comment

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