• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 20 hours Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 1 min L.A. Mayor Ditches Gas Plant Plans
  • 6 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 2 hours students walk out of school in protest of climate change
  • 1 hour Prospective Cause of Little Ice Age
  • 1 day Amazon’s Exit Could Scare Off Tech Companies From New York
  • 21 hours And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 2 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 7 hours Ford In Big Trouble: Three Recalls In North America
  • 1 day And the War on LNG is Now On
  • 4 hours Is the Green race a race from energy dependence.
  • 7 hours Why Is Japan Not a Leader in Renewables?

Oil Slips After API Reports Strong Build To Crude Inventories

Oil tanker

U.S. crude oil inventories increased yet again by 9.94 million barrels, according to this week’s American Petroleum Institute (API) inventory report published on Tuesday afternoon, reminding OPEC that its cuts are but a gaping window of opportunity for U.S. shale producers.

Oil prices were on the rise prior to this week’s API inventory data release, with the market sentiment largely one of positivity as all indications are that OPEC is indeed trimming the fat when it comes to oil supply. But as has been the case over recent weeks, the upward trend in prices after OPEC releases good tidings regarding its members’ adherence to production cuts are often undone—or at best range-bound—by the few members that are not adhering to (Iraq, UAE, Venezuela, Algeria) or aren’t bound by (Libya, Nigeria) the production cut, along with unfavorable weekly oil stock data courtesy of the API and Energy Information Administration (EIA) that show US stocks continue to rise.

Next month, US shale oil production is expected to rise by 79,000 barrels per day—the highest increase in five months—to 4.87 million bpd, its highest rate of since May last year, EIA data showed on Monday.

Prior to the API’s data release, Brent crude was trading up $0.36 at $55.95, while WTI crude was trading up $0.26 at $53.19.

The API also reported a 720,000-barrel build in gasoline inventories, with a 1.5 million barrel build in distillates inventories.

Supplies at the Cushing, Oklahoma, facility fell this week by 1.27 million barrels, contradicting analyst expectations that this week would see a build at the Cushing facility of 500,000 barrels.

Last weeks’ EIA report showed a huge 13.8-million-barrel build in crude oil inventories.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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