• 3 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 5 minutes Could Tesla Buy GM?
  • 11 minutes Global Economy-Bad Days Are coming
  • 17 minutes Venezuela continues to sink in misery
  • 5 hours OPEC Cuts Deep to Save Cartel
  • 5 hours What will the future hold for nations dependent on high oil prices.
  • 1 day End of EV Subsidies?
  • 12 mins Price Decline in Chinese Solar Panels
  • 12 hours Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 12 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 9 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 22 hours Permian Suicide
  • 1 day GOODBYE FOREIGN OIL DEPENDENCE!!
  • 1 day Asian stocks down
  • 1 day IT IS FINISHED. OPEC Victorious
  • 1 day Maersk's COO statment.
Are Russia’s Natural Gas Goals Too Ambitious?

Are Russia’s Natural Gas Goals Too Ambitious?

Years ago, Russian President Vladimir…

Could Iraq Be The Next OPEC Member To Exit?

Could Iraq Be The Next OPEC Member To Exit?

Just two days after Qatar’s…

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
-->