• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 4 hours Shale Oil will it self destruct?
  • 14 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 4 hours Today in Energy
  • 43 mins Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 5 hours Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 1 day Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 1 day Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 12 mins Iran Captures British Tanker sailing through Straits of Hormuz
  • 2 days Washington Post hit piece attacking oil, Christians and Trump
  • 2 days Migration From Eastern Europe Raises German Population To Record High
  • 19 hours Why Natural Gas is Natural
  • 15 hours LA Solar Power/Storage Contract
  • 2 days Excellent Choice: Germany's Von der Leyen Secures Powerful EU Executive Top Job
India’s Solution To A 100% Surge In Energy Demand

India’s Solution To A 100% Surge In Energy Demand

India’s increasing hunger for energy…

Libya’s Oil Revenue Takes A Beating

Libya’s Oil Revenue Takes A Beating

Libya’s oil revenue fell significantly…

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

Downstream processing

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

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play