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The American Petroleum Institute (API) reported a surprise draw of 2.13 million barrels of United States crude oil inventories for the week ending October 12, compared to analyst expectations that this week would see a build in crude oil inventories of 2.167 million barrels.
Last week, the American Petroleum Institute (API) reported the biggest build in more than a year, with crude oil inventories swelling by almost 10 million barrels for the week. One day later, the Energy Information Administration proffered a more modest—but still large—estimate of the build at 5.987 million barrels.
The API reported a draw in gasoline inventories as well for week ending October 12 in the amount of 3.4 million barrels. Analysts had predicted a draw of 1.074 million barrels for the week.
Oil prices were up in afternoon trading prior to the release of the API data on inventories. At 3:10pm EDT, WTI was trading up 0.07% (+$0.05.) at $71.83. While up on the day, WTI is trading more than $1 below the price it was trading at this time last week as an emotional market closely scrutinizes industry news regarding Iran’s faltering oil exports and increases in production from the United States, Saudi Arabia, and Russia.
The Brent crude benchmark was trading up 0.64% (+$0.52.) at $81.30—more than $1 below last week’s Tuesday prices.
Inventories at the Cushing, Oklahoma, site increased this week by 1.5 million barrels.
US crude oil production as estimated by the Energy Information Administration kept prices in check, hitting a new record of 11.2 million bpd for the week ending October 05.
Distillate inventories were down this week by 246,000 barrels, compared to a larger expected draw of 1.280 million barrels.
The U.S. Energy Information Administration report on crude oil inventories is due to be released on Thursday at 11:00a.m. EDT.
By 4:48pm EDT, WTI was trading up at $72.21 and Brent was trading up at $81.66.
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.