• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 14 mins In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 2 hours Will Uncle Sam Step Up and Cut Production
  • 8 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 8 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 2 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 8 hours Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 2 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 13 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 22 hours Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 1 day Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 21 hours Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 11 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 3 hours US Petroleum Demand Strongest Since 2007

Oil Prices Stabilize After API Reports Minor Crude Draw

Oil pipeline

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.

Last week, the API reported a surprise crude draw of 6.127 million barrels. A day later, the EIA showed that inventories had drawn down 1.7 million barrels from the previous week.

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

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Jim Miceli on January 16 2019 said:
    I now believe that (WTI) should advance from the present price of 52.10 per barrel and enter a 53.00 out to 55.00 tick. I've always believed that when the price of Gold dropped off and (ABX) Market Capital spiraled many Companies would look to pricing. No way a Barrel of Oil can make 4 or more Products and survive.
  • Neil Dusseault on January 15 2019 said:
    So, here we go again:

    The draws between both Crude and at Cushing total 1,356,000 bbl...the expectation for Crude alone was for a draw of 2,500,000 bbl (a difference of 1,144,000 bbl which is closer to the actual number of the total draws).

    Now, compare the builds:
    A combined total of 9,204,000 bbl of petroleum product--which means there was a net increase of 7,848,000 bbl which is almost 4 times as much of the draws (which are already figured in this number).

    But 'algos' seems to think this is all bullish news as both WTI & RBOB are trading up since this report from API. Why is RBOB Gasoline futures trading on the upside at all lately?

    All API & EIA have reported for the past month is nothing but builds.
    If there is a draw reported in crude, then WTI goes up.
    But if there are builds in gasoline, RBOB still goes up!! (by another $0.05 today alone)
    Why are there 2 separate commodities if the "market" (really, just 'algos') treats them the same?!

    "U.S. crude rises 3.2%, settling at $52.11, on hopes for China economic stimulus"
    This was today's headline at the close...is oil ever down on "hopes" for any reason?!

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play