• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 1 hour One Last Warning For The U.S. Shale Patch
  • 4 hours Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 4 hours Chile Tests Floating Solar Farm
  • 2 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 10 hours Poll: Will Renewables Save the World?
  • 8 hours Modular Nuclear Reactors
  • 19 hours China's E-Buses Killing Diesel Demand
  • 19 hours Trump sells out his base to please Wallstreet and Oil industry
  • 15 hours China's Expansion: Italy Leads Europe Into China’s Embrace
  • 1 day Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 1 day Read: OPEC THREATENED TO KILL US SHALE
  • 1 day Trump Tariffs On China Working
  • 1 day Biomass, Ethanol No Longer Green
  • 8 hours US-backed coup in Venezuela not so smooth

Oil Falls After API Reports The Biggest Crude Inventory Build In 6 Weeks

Distillates tanks

Oil prices fell on Wednesday after having to 18-month highs as oil markets are anticipating OPEC cuts that are expected to be made starting January 1 next year. The American Petroleum Institute’s (API) weekly report showed build of 4.2 million barrels to the United States’ commercial crude inventories, instead of an expected 1.5 million-barrel draw.

The build comes after last week’s report from the Energy Information Administration (EIA) that showed a build of 2.3 million barrels of crude oil in inventories the week prior.

Gasoline inventories have seen several weeks of strong additions consumption started to fall because the winter weather has caused a bit of a lull in demand while refineries continue to churn out gasoline. API data this week shows a 2.8 million barrel draw to gasoline stockpiles whereas a one million barrel draw was predicted.

Crude levels at the Cushing, Oklahoma continue to increase, and are rising in line with analyst expectations, 528,000 barrels were added. Crude storage levels at this key site have been rising rapidly since October, and this week’s report confirms the fourth build in five weeks according to Zerohedge.

Lastly, API data sees a bullish 1.7 million barrel draw to distillate inventories.

Today’s API projections are expected to be confirmed by tomorrow’s EIA data. Markets in the meantime remain optimistic about OPEC's willingness to stick to the output cut deal and CFTC data now show that the OPEC bears are feeling the squeeze and have now cut back bearish bets on WTI to levels not seen since August 2014.

Related: The Unsustainable $60 Oil Spike In 2017

While oil traders seem extremely bullish, storage fundamentals indicate larger crude stockpiles than one year ago around this time of the year.

The price of WTI was down 0.45% to $53.66 at 3:55 PM CST, while Brent traded 0.25% lower at $55.95. Gasoline prices were up 0.80% to $1.6750.

By Tom Kool of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Kr55 on December 28 2016 said:
    Lots of games being played with these numbers and where oil is being stored to get a last little run before the cuts start. Manipulation will only get worse as more trading houses buy up more assets in the industry and can control more of the numbers that get fed to API and EIA.

Leave a comment

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