• 4 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 6 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 12 mins Most ridiculous green proposal
  • 9 hours China Sets Its Sights On Global [EV, AI, CRISPR, Fusion, Navel Lint Collector] Dominance
  • 3 mins Rethinking election outcomes for oil.
  • 5 hours Video Evidence that the CCP controls Joe Biden
  • 21 hours The Leslie Stahl/60 Minutes Interview with President Trump
  • 1 hour The City of Sturgis Update on the Motorcycle Rally held there, and the MSM's reporting hence
  • 6 hours P@A will cost Texas Taxpayers $117 Billion.
  • 5 hours Republicans Have Become the Party of Hate
  • 6 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 1 day WallStreet Journal editorial " . . Big Tech-Media are the propaganda arm of Democrat Party leading to one party autocratic rule. " This is the State of the Union.
  • 2 days Even Obama can't muster a crowd to support Biden.
  • 21 hours Permian in for Prosperous and Bright Future
  • 1 day Clean Energy Is Canceling Gas Plants
  • 24 hours Vote Biden for Higher Oil Prices
  • 2 days Irina Slav has a good article - Regarding Investors & Oil

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

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