• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 57 mins Sources confirm Trump to sign two new Executive orders.
  • 10 hours CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 4 hours In a Nutshell...
  • 47 mins No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 23 hours Why Wind is pitiful for most regions on earth
  • 9 hours A Real Reality Check on "Green Hydrogen"
  • 1 day Why Oil could hit $100
  • 9 hours Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 1 day During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 9 hours Putin Paid Militants to Kill US Troops
  • 16 mins Where is Alberta, Canada headed?
  • 3 days Coronavirus hype biggest political hoax in history
Second Covid Wave Could Send Oil Prices Into “Tailspin”

Second Covid Wave Could Send Oil Prices Into “Tailspin”

Oil prices face significant downside…

Canada’s Oil Patch Is Bringing Production Back Online

Canada’s Oil Patch Is Bringing Production Back Online

Encouraged by higher oil prices,…

Oil Prices Fall After API Reports Huge Build In Gasoline Inventories

The American Petroleum Institute (API) reported a large draw of 5.481 million barrels of United States crude oil inventories for the week ending December 1, while analysts had expected a drawdown of 3.507 million barrels. The draw may embolden oil bulls who were left wanting after the OPEC meeting failed to lift prices as many had hoped.

Last week, the American Petroleum Institute (API) reported a surprise build of 1.821 million barrels of crude oil when analysts had expected a drawdown of 3.15 million barrels. A day later, however, the EIA reported a 3.4-million-barrel draw, more in line with analyst expectations.

Gasoline inventories, on the other hand, saw a massive build this week of 9.196 million barrels for the week ending December 1, compared to forecasts of a much smaller 1.145-million-barrel build.

This week’s unexpectedly large build in gasoline inventories is likely to put downward pressure on oil prices.

Oil prices were mixed heading into today’s data, with WTI down $.02 (-0.03%) at $57.45 at 12:06pm EST, and Brent crude up $0.14 (-0.22%) at $62.59—both benchmarks down from prices just two days before the OPEC meeting last week, despite OPEC’s promise to continue the production cuts through the end of 2018.

Related: Don’t Count On A Utah Shale Boom

Distillate inventories, too, saw a build this week, up 4.259 million barrels, against a forecast of a 548,000-barrel build.

Inventories at the Cushing, Oklahoma, site decreased by 1.951 million barrels this week.

The U.S. Energy Information Administration report on oil inventories is due to be released on Wednesday at 10:30 a.m. EDT.

Shortly after data release, the WTI benchmark was down 0.35% on the day to $57.67 at 4:38pm EST. Brent was trading down 0.75% on the day at $62.92.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Tony on December 05 2017 said:
    And the new tax bill approves drilling in Alaska. Drill baby Drill. Make America self-dependent again.
  • Kroger on December 05 2017 said:
    Good, I'd hate to see an gasoline price increase ruin holiday spending. This is great news for the economy. We've got gas coming out of the ying yang. Take that OPEC we don't need your lousy oil.

Leave a comment

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