• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 1 hour Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 22 mins California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 hour "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 4 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 2 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 2 days Nord Stream - US/German consultations
  • 4 days An Indian Opinion on What is Going on in China
  • 408 days Class Act: Bet You've Never Seen A President Do This.
  • 4 days Can Technology Keep Coal Plants Alive and Well?
  • 5 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 1 day Australia sues Neoen for lack of power from its Tesla battery
  • 1 day Forecasts for Natural Gas
  • 4 days Storage of gas cylinders

Oil Plunges After API Reports Large Unexpected Crude Inventory Build

The American Petroleum Institute (API) estimated on Tuesday a large crude oil inventory build, of 8.731 million barrels for the week ending May 22.

Analysts had predicted an inventory draw of 2.50 million barrels.

In the previous week, the API estimated a draw in crude oil inventories of 4.8 million barrels. Meanwhile, the EIA’s estimates were for wildly different, with the industry body reporting last week that the inventories had fallen by 5 million barrels.

WTI was trading down on Wednesday afternoon prior to the API’s data release, although the outlook for a rebalanced oil market is more positive than it was even just two weeks ago, with many U.S. states easing lockdown restrictions and the world’s largest oil producers, including Saudi Arabia, Russia, and the United States, cutting production by more than many market analysts had predicted would be the case.

Oil production in the United States has now fallen from 13.1 million bpd on March 13 to 11.5 million bpd for May 15, according to the Energy Information Administration—a drop of 1.6 million bpd—more than OPEC’s production cut agreement from last year.

At 2:19 pm EDT on Tuesday the WTI benchmark was trading down on the day by $1.35 (-3.93%). The price of a Brent barrel was trading down on Wednesday as well, by $1.29 -(3.57%), at $34.88.

The API reported a build of 1.120 million barrels of gasoline for week ending May 22—compared to last week’s 651,000-barrel draw. This week’s draw compares to analyst expectations for a 33,000-barrel draw for the week.

Distillate inventories were up by 6.907 million barrels for the week, compared to last week’s 5.1-million-barrel build, while Cushing inventories saw a draw of 3.370 million barrels.

At 4:39 pm EDT, WTI was trading at $32.7 while Brent was trading at $34.68.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News