The American Petroleum Institute (API) reported a surprise build of 4.755 million barrels of United States crude oil inventories for the week ending January 17, ending the streak of seven large draws in the previous seven weeks, according to the API data. Analysts had expected a drawdown of 1.6 million barrels in crude oil inventories.
Last week, the American Petroleum Institute (API) reported a huge draw of 5.121 million barrels of crude oil, along with an increase in gasoline inventories of 1.782 million barrels.
This week, the API is reporting another build in gasoline inventories of 4.117 million barrels for the week ending January 17. Analysts had expected a smaller 2.486-million-barrel build.
The WTI and Brent benchmarks both saw big gains on Tuesday as the IMF painted a rosy picture of the global economy for 2018 and 2019. At 3:27pm EST, WTI was trading up 1.75% (+$1.11) at $64.68. The Brent benchmark was trading up 1.52% ($1.05) at $70.08—the over-$70-threshhold being a significant psychological level to break through, and a new multi-year high for the closely watched international benchmark.
Distillate inventories saw a decrease this week of 1.280 million barrels, largely in line with the forecast for a 1.471-million-barrel decline.
Inventories at the Cushing, Oklahoma, site decreased by 3.572 million barrels this week.
While US crude oil inventories are up for the week, production for week ending January 12 is also up, coming in at 9.750 million bpd.
The U.S. Energy Information Administration report on oil inventories is due to be released on Wednesday at 10:30. EST.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.