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The American Petroleum Institute (API) reported a crude oil inventory draw of 650,000 barrels for the week ending Jan 11, compared to analyst expectations that we would see a draw in crude oil inventories of at least 2.5 million barrels.
Leading up to today’s data release from the API, crude oil prices were trading up on the day after a rough start to the week, as traders strengthening faith in OPEC and its allies that it will do whatever it takes to keep the markets balanced, and in a de-escalation of the trade war between China and the United States.
At 1:41pm EST on Tuesday, WTI was trading up on the day $1.32 (+2.61%) per barrel at $51.83—a rise of more than $2 since the last API report. Brent crude was trading up $1.33 (+2.25%) at $60.32—a near $2 increase from this time last week.
Inventories in the Cushing, Oklahoma facility this week fell by 796,000 barrels.
The API this week reported another large build in gasoline inventories for week ending January 11 in the amount of 5.99 million barrels.
US crude oil production as estimated by the Energy Information Administration showed that production for the week ending January 4—the latest information available--stayed at 11.7 million bpd for the third week in a row.
Distillate inventories increased this week by 3.214 million barrels, much less than last week’s 10+ million barrels build
The U.S. Energy Information Administration report on crude oil inventories is due to be released on Wednesday at 10:30a.m. EST.
By 5:11pm CST, WTI was trading up at $52.07 and Brent was trading up at $60.60.
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.