• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days The United States produced more crude oil than any nation, at any time.
  • 16 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 2 hours How Far Have We Really Gotten With Alternative Energy
Tesla to Lay Off Over 10% of Global Workforce

Tesla to Lay Off Over 10% of Global Workforce

Tesla is laying off over…

Triple Junction Solar Cell Sets World Record Efficiency

Triple Junction Solar Cell Sets World Record Efficiency

NUS researchers have developed a…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Oil Prices Plunge After API Reports Significant Build To U.S. Crude Stocks

American crude oil supplies surged upwards by 4.8 million barrels this week, almost completely offsetting last week’s 5.2-million-barrel draw, according to the American Petroleum Institute (API) report released on Tuesday.

This week’s inventory build will likely press further down on oil prices, which were already trading down on the market’s increasing uneasiness over the OPEC drama, including Iraq’s OPEC rebellion, Russia’s vague and vacillating comments as to whether they’ll join in a freeze or a cut, and Venezuela’s pleas to get non-OPEC members to cut in proportion to the bloc’s to-be-determined limits.

The West Texas Intermediate (WTI) price settled to three-week lows once the report went public Tuesday afternoon. At the time of the report’s writing, WTI stood at $49.30 – down 2.41 percent from the day’s start, while Brent fell to $50.29, or 2.27 percent from the open.

Experts had predicted an inventory build of two million barrels of crude, according to Zero Hedge.

Gasoline inventories rose by 1.7 million barrels, against an anticipated draw of one million barrels.

Tomorrow’s official inventory report from the Energy Information Administration (EIA) will add to the volatility, particularly if the numbers stray far from API’s data.

Supplies at the Cushing storage facility in Oklahoma decreased by 2.3 million barrels, instead of the modest 500,000-barrel draw that analysts expected, the report said.

Six of the past seven weeks have seen notable crude supply draws, with the current build breaking the streak.

ADVERTISEMENT

“You’ve gone from a very optimistic sentiment immediately following the Algiers announcement to a sentiment that’s more skeptical of the ability of OPEC to pull off a meaningful cut,” Paul Crovo of the Philadelphia-based consulting company by PNC Capital, told Zero Hedge.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News