• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 5 hours Wonders of Shale- Gas,bringing investments and jobs to the US
  • 2 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 4 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.
  • 3 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 4 hours IMO2020 To scrub or not to scrub
  • 26 mins California's Oil Industry Collapses Despite Shale Boom
  • 11 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 5 hours Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 34 mins Global Warming Making The Rich Richer
  • 2 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 10 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 12 hours Greenpeace Blocks BP HQ
  • 5 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader

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