• 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
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 20 hours By Kellen McGovern Jones - "BlackRock Behind New TX-LA Offshore Wind Farm"
  • 8 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
  • 9 days Bad news for e-cars keeps coming
  • 7 days The United States produced more crude oil than any nation, at any time.
  • 10 days RUSSIA - Turkey & India Stop Buying Russian Oil as USA Increases Crackdown on Sanctions
Could China Deliver a Bearish Shock to Oil Markets?

Could China Deliver a Bearish Shock to Oil Markets?

China will continue featuring prominently…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Oil Falls After API Reports Surprise Gasoline Inventory Build

The American Petroleum Institute’s weekly report on inventories included numbers largely in line with expectations, with a 2.3 million barrel crude oil draw tallied for the 7-day period ending on 15 July.

Gasoline showed a larger build than had been anticipated, with 800,000 barrels in increased inventories instead of a 500,000-barrel drop in stockpiles.

Oil futures moved lower in electronic trading on Tuesday, stabilizing at a 10-week low, after the data began affecting the markets. August crude stood at $44.56 at the time of this article’s writing.

The Energy Information Administration’s weekly report will release on Wednesday and analysts polled by S&P Global Platts expect a 1.25 million barrel decline in crude inventories.

The API’s report last Tuesday showed that crude oil supplies rose to their highest point in ten weeks despite expectations of a 3 million barrel draw.

The institute said crude oil had defied the anticipated draw, recording a 2.2 million barrel build, however, the U.S. Energy Information Administration (EIA) reported a 2.5-million-barrel reduction in U.S. crude oil inventories a day later, once again contradicting the American Petroleum Institute (API) figures, indicating an inventory increase of 2.2 million barrels.

The EIA publishes the official inventory data and is considered the primary source for these figures.

Analysts expectations last week had been for a 3-million-barrel draw, so when the API reported a 2.2-million-barrel move in the opposite direction, the markets responded, sending crude oil prices downward again.

The prices had seen gains since last week following new Organization of the Petroleum Exporting Countries (OPEC) data showing that, according to Reuters, “the market was likely to achieve balance in supply-demand by next year.”

Oil prices jumped prior to the last API report and rose by nearly 5 percent, which represents their biggest gains since last April 8. Brent crude futures rose US$2.22, or 4.8 percent, to close at US$48.47 per barrel. West Texas Intermediate crude futures rose US$2.04, or 4.6 percent, to end the day at US$46.80.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Trevor Smiley on July 20 2016 said:
    People reflexively sell, and prices briefly drop, when the inventory goes down a bit. This is a mistake and misleading, however. The US still imports millions of barrels a day, so net changes in inventory come from import levels. Inventory drops do not reflect under-production. Companies add to storage when they expect prices to go up to more than compensate for storage costs. They take oil out of storage when they expect price declines. So inventory drops can actually be bearish, in that they reflect the industries expectation of price declines.

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