• 5 minutes China Faces Economic Collapse
  • 8 minutes ZeroHedge: Oil And Gas Bankruptcies To Accelerate As $137 Billion Debt Matures Over Next Two Years
  • 11 minutes Trump Will Win In 2020
  • 14 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 6 hours The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 5 hours Democrats and Gun Views
  • 6 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 6 mins Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 hours Buy Oil Monday?
  • 2 hours Swedish Behavioral Scientist Suggests Eating Humans to ‘Save the Planet’ from Climate Change. What could possibly go wrong?
  • 12 mins Cost of oil
  • 4 hours “Who’s going to bail out the Central Banks?”
  • 3 hours Trump Orders Biofuel Boost
  • 12 hours It's the demand, Stupid
  • 9 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 6 hours Green New Deal Preview in Texas Town
  • 6 hours Used Thin Film Solar Panels at 15 Cents per Watt
U.S. Plays ‘Whac-a-Mole’ Game With Iran

U.S. Plays ‘Whac-a-Mole’ Game With Iran

The U.S. continues to impose…

Oil Prices Leap Higher After API Reports Huge Crude Draw

oil tanker

The American Petroleum Institute (API) reported a huge draw of 10.23 million barrels in United States crude oil inventories, compared to S&P Global Platts survey of analysts who expected a draw of only 2.5 million barrels for the week ending July 21.

Gasoline inventories, on the other hand, bucked analyst traditions with a 1.903-million-barrel build for the week ending July 21, compared to analyst expectations that inventories for the fuel would fall by 1.25 million barrels.

Crude prices were up over 3 percent on Tuesday afternoon on expectations that the United States would see a drop in inventories, largely prompted by reports that Saudi Arabia is considering even deeper oil export cuts, particularly to the United States. Saudi Arabia-to-US oil exports were below 20 million barrels in June, down from 24.4 million barrels in May and 44 million barrels in December 2016, according to S&P Global Platts Oil Editor Jack Laursen.

At 4:00pm EST, WTI was trading up 3.32% at $47.88, with Brent crude trading up 3.25% at $50.18.

Gasoline was also trading up on the day before the data release, by 2.58% at $1.597.

Crude oil inventories in the US began its downward slide in early April, and have continued to fall, erasing nearly all of the inventory that was built between January and April. According to the API, today’s build brings the total inventory for crude oil in 2017 to a net draw of 7.534 million barrels—the first net draw for 2017 since January.

Related: Oil Markets Unimpressed By OPEC Meeting

(Click to enlarge)

Distillate inventories fell this week, by 111,000 barrels, compared to analyst expectations of a 800,000-barrel draw.

Inventories at the Cushing, Oklahoma, site fell by 2.568 million barrels.

By 4:39pm EST, WTI was trading at $48.02, with Brent Crude trading at $50.29.

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


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
Download on the App Store Get it on Google Play