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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
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.