• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 54 mins Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 1 hour Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 1 hour California Threatens Ban on ICE Cars
  • 14 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 19 hours Solar Industry Lays Claim To The 2020s; Kicks Off The Solar+ Decade
  • 18 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 1 day Iran v USA the perfect fire triangle
  • 1 day DUG Rockies: Plenty Of Promise, Despite The Politics
  • 24 hours U.S. and Turkey
  • 17 hours Shell ‘to have commercial wind farms’ by early 2020s
  • 7 days How can Trump 'own' a trade war?
  • 36 mins Global Warming Making The Rich Richer
  • 2 days Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
Bearish EIA Report Keeps Oil Prices Down

Bearish EIA Report Keeps Oil Prices Down

Oil prices got a bearish…

Oil Prices Leap Higher After API Reports Huge Crude Draw

Oil pumps

The American Petroleum Institute (API) reported a major draw of 8.636 million barrels of United States crude oil inventories for the week ending September 7, compared to S&P Global Platts analyst expectations that this week would see a draw in crude oil inventories of 2.7 million barrels.

Last week, the American Petroleum Institute (API) reported a modest draw of 1.17 million barrels of crude oil.

The API reported a build in gasoline inventories for week ending September 7 in the amount of 2.122 million barrels. Platts analysts predicted no change in gasoline inventories for the week.

Oil prices were trading up in late morning trade prior to the release of the API data on inventories. At 11:17am EDT, WTI was trading up 1.72% (+$1.16) at $68.70 per barrel—down slightly from prices this time last week. Brent crude was also trading up, by 1.56% (+$1.21) at $78.58—almost $1.00 over last week’s figures.

Tuesday’s rising prices were largely the result of OPEC geopolitical woes and supply outages, both real and imagined, including in Iraq, Libya, Venezuela, and Iran. Also a boost for prices is Hurricane Florence—a Category 4 hurricane that is expected to hit the Carolinas this week. Florence may prove to be the worst storm to hit North Carolina in 60 years, and nearly 1.5 million people have been ordered to evacuate, according to CNBC.

US crude oil production as estimated by the Energy Information Administration was unchanged for yet another week at 11.0 million bpd for the week ending August 31—unable to break through the 11 million psychological barrier.

Distillate inventories were also up this week—by 5.82 million barrels, compared to an expected build of 2.3 million barrels. Inventories at the Cushing, Oklahoma, site decreased this week by 1.165 million barrels.

The U.S. Energy Information Administration report on crude oil inventories is due to be released on Wednesday at 11:30a.m. EDT.

By 4:47pm EDT, WTI was trading up at $69.94 and Brent was trading up at $79.47.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • rjs on September 11 2018 said:
    no, no; no, no....there is not an 11 million "psychological barrier" for US crude oil production...stock prices, oil prices, maybe, but not oil production...
  • Harris S on September 11 2018 said:
    This could be viewed as a bearish report due to lack of demand for gasoline.
  • Rick on September 11 2018 said:
    You failed to show the very large distillates build. Together with gasoline they almost totally offset the draw down. Several days of extreme weather will create product demand destruction.
    This news not as bullish as seen at first blush.

Leave a comment

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