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Oil Prices Up Despite Crude Build

The American Petroleum Institute (API) reported a build of 1.25 million barrels of United States crude oil inventories for the week ending September 14, compared to analyst expectations that this week would see a draw in crude oil inventories of 2.741 million barrels.  

Last week, the American Petroleum Institute (API) reported a hefty draw of 8.636 million barrels of crude oil.

The API reported a draw in gasoline inventories for week ending September 14 in the amount of 1.485 million barrels. Analysts predicted a small draw of 104,000 barrels in gasoline inventories for the week.

Oil prices were trading up in afternoon trade prior to the release of the API data on inventories. At 1:56pm EDT, WTI was trading up 0.80% (+$0.55) at $69.54 per barrel—almost $1.00 above last week’s prices. Brent crude was also trading up, by 0.79% (+$0.62) at $78.71—up slightly from last week’s figures.

Tuesday’s rising prices are largely a reflection of persistent supply deficits in Iran and Venezuela and the market’s opinion that Saudi Arabia’s newfound love for $80 Brent will translate into KSA’s reluctance to make up for any real or imagined supply deficits.

In fact, S&P Platts cited JODI data today that showed The Kingdom saw in July its highest crude oil inventory drawdown in eight months.

US crude oil production as estimated by the Energy Information Administration was down slightly for week ending September 7 at 10.9 million bpd.

Distillate inventories were up this week—by 1.536 million barrels, compared to an expected build of 651,000 barrels. Inventories at the Cushing, Oklahoma, site decreased this week by 1.57 million barrels.

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

By 4:40pm EDT, WTI was trading up at $69.54 and Brent was trading up at $78.71.

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By Julianne Geiger for Oilprice.com

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  • C Baskin on September 19 2018 said:
    fossil fuels are done sooner or later, don't want to wake up and find out it's already happened. try IT stocks instead.
  • Chalmus on September 19 2018 said:
    Personally I'd call this build "cataclysmicly gargantuan", but clearly this author tends to err on the side of understatement
  • Damir on September 19 2018 said:
    "Mammoth" build of 1.25 mbbl? ????
    Is . at a wrong place in this number?
  • john ash on September 18 2018 said:
    Would the storms and bad weather have a moderate to large effect on the delivery of oil thus creating some build up of oil at holding points. With the massive difference in prices for Brent and WTI oil it would be fair to expect a greater sale volume of WTI oil. Considering the above we could expect a massive draw down of stored oil in the next two weeks.
  • Kr55 on September 18 2018 said:
    One of the best comment sections ever for an article on this site.
  • Randy Rancher on September 18 2018 said:
    "Mammoth" ??
  • Michael on September 18 2018 said:
    How exactly is a build of just 1.25M barrels massive?? That seems tiny, even if a small draw was expected.
  • MICHAEL L COOPER on September 18 2018 said:
    Beware of this writer; Anyone that claims that an increase of 1.25 million bbls of crude oil is MAMMOTH or MASSIVE(she used both adjectives in the article) knows nothing about the crude oil market. 1.25 million bbls is equivalent to approximately .1% of the previous weeks ending inventory, neither mammoth or massive by any measurement.
  • MICHAEL L COOPER on September 18 2018 said:
    Beware of this writer; Anyone that claims that an increase of 1.25 million bbls of crude oil is MAMMOTH or MASSIVE(she used both adjectives in the article) knows nothing about the crude oil market. 1.25 million bbls is equivalent to approximately .1% of the previous weeks ending inventory, neither mammoth or massive by any measurement.
  • Andrew Hopkins on September 18 2018 said:
    A Mammoth rise of 1.25 mb and a hefty draw of 8 mb the week before.

    Shouldn&#039;t 1.25 be called hefty and 8 be called mammoth.? To be honest these weekly reports are pretty useless.

    Oil will be under pressure in the coming weeks as Iranian oil sanctions kick in and Libya and Venezuela get worse. Trump must be looking for an Iranian regime change . It is no use asking Russia to pump more as Trump has sanctioned them too by not providing western oil expertise and materials...

    Trump&#039;s move on Iran could very well spell disaster for the world. I hope he has a backup plan because cornered rats fight back.
  • Sojc on September 18 2018 said:
    A tiny 1.25 million build is "Massive", but last week's 8.636 million draw was only "hefty". Quite absurd.
  • Mike Wong on September 18 2018 said:
    "The American Petroleum Institute (API) reported a mammoth build of 1.25 million barrels "

    "The API reported a draw in gasoline inventories for week ending September 14 in the amount of 1.485 million barrels"

    Where is the adjective in front of the gasoline draw. Its not a mammoth draw in gasoline when 1.25M is considered mammoth.
  • Andrew on September 18 2018 said:
    Lol that is not a massive crude build, the past 3 weeks we've seen crude draws 3 to 4 times that. Also, API is consistently wrong, you seem to forget to mention API was off with their estimate by 3 million last week according to EIA. Genscape and S&P Global Platts are much more consistent with their estimates then API is
  • Jay on September 18 2018 said:
    Since when was 1.25 million barrels a massive crude build? Are you short oil?
  • jack ma on September 18 2018 said:
    1.25 million barrels is not mammoth but rather small. Kind of like the winds that were blowing over the news reporter in the recent hurricane yet two cool dudes casually walked by in the background and were not fazed by the 'mammoth' winds. Of course oil is up as there is a mammoth shortage on the way and everyone knows it. Over one trillion dollars of underinvestment in good oil that can be used for things like jet fuel. Shale junk oil does not count really. IMHO
  • Don on September 18 2018 said:
    Why is a build of 1.25 million barrels considered mammoth?

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