• 2 minutes Oil prices going down
  • 11 minutes China & India in talks to form anti-OPEC
  • 16 minutes When will oil demand start declining due to EVs?
  • 13 mins Oil prices going down
  • 2 hours We Need A Lasting Solution To The Lies Told By Big Oil and API
  • 2 hours Another WTH? Example of Cheap Renewables
  • 2 days Bullish and bearish outlook for oil
  • 2 days Rolls Royce shedding 4,600 jobs
  • 23 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 1 day When will oil demand start declining due to EVs?
  • 1 day Russia's Rosneft 'Comfortable' With $70-$80 Oil Ahead of OPEC Talks
  • 38 mins What If Canada Had Wind and Not Oilsands?
  • 2 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 6 hours China & India in talks to form anti-OPEC
  • 2 days U.S. Cars Will No Longer Need 55mpg Fuel Efficiency By 2025.
  • 44 mins The Permian Mystery
  • 2 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 20 hours Gazprom Exports to EU Hit Record
  • 2 days OPEC soap opera daily update
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 Gains After API Reports Unexpected Fall In U.S. Crude Stocks

Shale Platform

American crude oil supplies have plunged by 3.8 million barrels this week, according to the American Petroleum Institute (API) report released on Tuesday.

This is a variance of almost 6 million barrels from what experts polled by Zero Hedge had anticipated: a 2.1 million increase in crude supplies.

This week’s draw comes as a welcome surprise to oil markets after last week’s EIA data showed a massive build of 4.9 million barrels.

West Texas intermediate prices are up $0.48 to $50.77 after the report was released.

Supplies in Cushing, Oklahoma, saw a 1.96 million barrel drop – the biggest withdrawal since February 2014 - slightly larger than the 1.4 million draw that analysts had expected.

Gasoline supplies increased by 929,000 barrels, while distillates fell by 2.3 million barrels.

Tomorrow’s report from the Energy Information Administration (EIA), which often contains widely different figures, will either confirm or deny the API’s findings.

Torbjorn Tornqvist, the CEO of the Singapore-based commodities trader Gunvor Group, said he “doubts prices can go much higher,” which caused WTI prices to show a little weakness until the API report hit the press.

“People are stepping back and saying, what next? OPEC has to prove it’s really going to do something. They’ve talked the talk, now they’ve got to walk the walk,” Michael Hiley, head of OTC energy trading at New York-based LPS Futures, told Bloomberg over the phone, adding that "he wouldn’t be surprised to see us continue this choppy-type price action and go nowhere."

At the time of the report’s writing, Brent stood up $0.16 at $51.68 since markets opened Tuesday morning.

In better days, the draw might have caused numbers to spike and stay there—at least until Wednesday’s EIA report confirmed or denied the findings.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Amvet on October 19 2016 said:
    Why not write an article about the totally corrupt marketing system?

    Supply and demand have nothing to do with markets.
    Cash rich banks and funds use leverage of up to 100 (or more) to buy what they cannot use and sell what they do not own.

    Could you design a more corrupt (and profitable for the few) system ???

    Amvet

Leave a comment

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