• 4 minute Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 5 hours Oil prices going down
  • 30 mins Could oil demand collapse rapidly? Yup, sure could.
  • 2 hours Migrants: Italy Wants EU Border Agency In Africa, Not At Sea
  • 10 mins Are EVs Safer Than Combustion Engine Vehicles?
  • 9 hours Sabotage at Tesla
  • 3 hours What If Canada Had Wind and Not Oilsands?
  • 17 hours Oil and Trade War
  • 2 hours Sell out now or hold on?
  • 4 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 16 hours Germany Orders Daimler to Recall 774,000 Diesel Cars in Europe
  • 19 hours Russia and Saudi Arabia to have a chat on oil during FIFA World Cup - report
  • 13 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 5 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 3 hours Nopec Sherman act legislation
  • 5 hours The Irrelevance Of BTU Rating - Big Oil's Gimmick To Hoodwink The Public
  • 17 hours venezuala oil crisis
Did OPEC Need To Cut Oil Output At All?

Did OPEC Need To Cut Oil Output At All?

Global oil demand continues to…

5 Companies To Watch As Tech Takes Aim At The Finance Industry

5 Companies To Watch As Tech Takes Aim At The Finance Industry

The fintech revolution has accelerated…

Oil Prices Under Pressure After API Reports Large Gasoline Build

oil rig

The American Petroleum Institute (API) reported a draw of 4.079 million barrels in United States crude oil inventories, compared to more modest analyst expectations that inventories would draw only 756,000 barrels for the week ending September 29.

Gasoline inventories, on the other hand, delivered a blow with a larger than expected build of 4.19 million barrels for the week ending September 29, against an expected build of only 1.088 million barrels. Last week, too, saw a large gasoline build.

Both WTI and Brent benchmarks fell again on Tuesday after a bad Monday, both down more than a dollar week on week as reports that OPEC raised production in September by as much as 120,000 barrels per day, according to a Bloomberg survey.

WTI hitting a 7-month high last Monday at $52.22.

At 2:56pm EST, WTI was trading down 0.04% (-$0.02) at $50.44, while Brent crude traded down 0.27% (-$0.15) at $55.97.

Gasoline was trading up on Tuesday, at $1.56, down .44% on the day, but down almost 8 cents from last week.

While the inventory draws keep piling on the United States, the global supply/demand situation for crude oil is still not balanced, and fears are that OPEC’s currently proposed end date of March 2018 for the cuts will prove to be too soon.

For the US, the total draw for crude oil in 2017 now stands at just shy of 26.5 million barrels, according to API data. EIA data show a 15-million-barrel draw for year-to-date 2017, through last week’s report.

Related: This Giant Oil Trader Sees Upside For Oil Prices

(Click to enlarge)

As the United States heads into the fall, the end of driving season has many analysts forecasting a slower-paced drawdown for crude oil in the near future.

Distillate inventories fell again this week, 584,000 barrels. Inventories at the Cushing, Oklahoma, site increased by 2.084 million barrels.

By 4:40pm EST, WTI was trading down a bit after the data, at $50.38 with Brent Crude trading at $55.91.

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

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Tim on October 03 2017 said:
    Always before an OPEC meeting. Never fails.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News