• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 16 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 12 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 4 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 6 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 16 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 1 day Corporations Are Buying More Renewables Than Ever
  • 7 hours Venezuela set to raise gasoline prices to international levels.
  • 3 hours Saudi Fund Wants to Take Tesla Private?
  • 13 hours Starvation, horror in Venezuela
  • 4 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 3 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 18 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 19 hours France Will Close All Coal Fired Power Stations By 2021
Is Deepwater Drilling More Profitable Than Shale?

Is Deepwater Drilling More Profitable Than Shale?

Conventional wisdom in oil markets…

Oil Demand Growth Starts To Weaken In Asia

Oil Demand Growth Starts To Weaken In Asia

Oil demand from Asia’s key…

Platts Predicts 3.1M Barrel Draw as API Predicts Surprise Build

Oil Worker

Ahead of official U.S. crude oil inventory data, which will be out on Thursday, a day late due to the Memorial Day holidays this week, S&P Global Platts is predicting that inventory will have dropped for a second straight week.

S&P Global Platts predicts that the Energy Information Agency (EIA) will report a 3.1-million-barrel decline in U.S. crude oil stocks tomorrow, for the week ending 27 May. Also tomorrow, OPEC will meet in Vienna, where the Middle East is again dangling an output freeze before the market.

A survey of analysts for S&P Global Platts also predicted that refinery utilization will have increased for the week by 1.1 percent, while gasoline stocks should show a 1.4-million-barrel draw. Distillate stocks are expected to have dropped by 400,000 barrels.

Related: Traders Watch Oil Chokepoints As Geopolitical Risk Soars

According to S&P Global Platts Oil Futures Editor Geoffrey Craig: “Another weekly drawdown would mark the first consecutive decline since September, providing further price support.”

Oil prices took a hit however after the American Petroleum Institute reported a 2.35 million barrel crude build whereas a 2.5 million draw was expected. The API reported a draw in distillates and gasoline stockpiles, most likely because driving season in the U.S. has started.

Official U.S. crude oil inventory data released last week confirmed a significant drop in stockpiles, showing a drawdown of 4.2 million barrels from the previous week.

Related: Is OPEC About To Surprise The Oil markets?

“At 537.1 million barrels, U.S. crude oil inventories are at historically high levels for this time of year,” the Energy Information Administration (EIA) said in its last weekly status report.

This pushed oil prices up close to $50.

Regarding contango, S&P Global Platts analysts also noted that a tight spread between Brent crude and West Texas Intermediate (WTI) “could lure more barrels to the U.S. for refining purposes, but conversely, the incentive to export crude to the U.S. for storage has dissipated.”

By Charles Kennedy of 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