• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 4 hours Shale Oil Fiasco
  • 40 mins Everything you think you know about economics is WRONG!
  • 5 hours READ: New Record Conoco Eagleford Vintage 5 wells, their 5th generation Test Wells . . Shale going bust . . . LAUGHABLE
  • 3 hours Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 22 hours Quotes from the Widowmaker
  • 4 hours Offshore is changing
  • 2 days Aramco to Drop $133B on Drilling over Decade
  • 17 hours You long it you short it it is Here for a long time since Trump signed it
  • 27 mins Tesla Launches Faster Third Generation Supercharger
  • 19 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 24 hours Global Debt Worries. How Will This End?
  • 23 hours IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years

Small Crude Draw Can’t Stop Oil From Plunging

oil storage

The American Petroleum Institute (API) reported a small crude oil inventory draw of 1.401 million barrels for the week ending July 11, compared to analyst expectations of a 2.69-million barrel draw.

The inventory draw this week is disappointing after last week’s large draw of 8.129 million barrels, according to the API. A day later, the EIA had estimated an even bigger inventory drawdown of  9.5 million barrels.

After a string of inventory draws, the net build is now just 12.16 million barrels for the 29-week reporting period so far this year, using API data.

Oil prices were trading down on Tuesday after shocking reports that US Secretary of State Mike Pompeo announced that Iran was ready to negotiate about the details of its missile program. Tensions over oil flows near the Strait of Hormuz have kept a floor under oil prices that would otherwise have fallen on recent weak oil demand growth projections.

At 3:35pm EST, WTI was trading down by $1.70 (-2.85%) at $57.88—nearly flat week on week. Brent was trading down $1.75 (-2.63%) at $64.73—up slightly from last week.

The API this week reported a 476,000-barrel draw in gasoline inventories for week ending July 11. Analysts estimated a draw in gasoline inventories of 925,000 barrels for the week.

Distillate inventories grew by 6.226 million barrels for the week, while inventories at Cushing fell by 1.115 million barrels.

US crude oil production as estimated by the Energy Information Administration showed that production for the week ending July 05 rose slightly this week to 12.3 million bpd, just 100,000 bpd off the all-time high of 12.4 million bpd.

The U.S. Energy Information Administration report on crude oil inventories is due to be released at its regularly scheduled time on Wednesday at 10:30a.m. EST.

By 4:43pm EST, WTI was trading at $58.12 while Brent traded at $64.97.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Shaleen Tripathi on July 17 2019 said:
    EVs have depressed the oil market...

Leave a comment

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