• 10 hours Elon Musk Goes Full Conspiracy Theorist, Blames Big Oil for Tesla's Negative Media Coverage
  • 5 hours Holiday weekend: Gas Prices Surge
  • 14 hours Why Alberta Will Win The War Over Trans Mountain
  • 22 hours Democrats Urge Trump to ‘Stand Up to OPEC’ Amid Rising Oil Prices
  • 9 hours Several US News Sites Block EU Readers After Missing GDPR Deadline
  • 10 hours How Much Oil Could EVs Feasibly Displace by 2040?
  • 1 day High Oil Prices Becoming Herd Mentality
  • 22 hours Expected:Trump Cancels Summit With North Korea Scheduled For Next Month
  • 1 day Russia/Germany Pipeline Really A Security Threat for US?
  • 23 hours How Lousy Shale Oil Economics Will Pull Down The U.S. Economy
  • 14 hours Trump announces more sanctions on Venezuela after Maduro Win
  • 13 hours $5 per gallon in Manhattan
  • 1 day "US fiscal outlook not good"-Goldman Sachs
  • 1 day Saudi Aramco IPO Seems Unlikely
  • 21 hours VW Just Ordered $48 Billion in Electric Car Batteries. That's About What Tesla Is Worth Right Now
  • 11 hours HAPPY RIG COUNT DAY!!

Surprise Build In Crude Oil Stocks Rattles Market

Rig

The American Petroleum Institute (API) reported a surprise build of 1.099 million barrels of United States crude oil inventories for the week ending April 20, contrary to analyst expectations that this week would see a draw in crude oil inventories of 2.648 million barrels.

A survey of S&P Global Platts for the week expected crude oil stocks to drop by 1.1 million barrels.

Last week, the American Petroleum Institute (API) reported a draw of 1.047 million barrels of crude oil.

The API reported a draw for gasoline inventories for week ending April 20, in the amount of of 2.724 million—a bigger draw than the 995,000-barrel one that analysts had expected.

Brent oil prices topped $75 in early trading on Tuesday with WTI approaching $70 a barrel as the market feared the chance of renewed U.S. sanctions on Iran is growing and as Tehran rhetoric flared up. At 07:45 a.m. EDT on Tuesday, WTI Crude was up 0.23 percent at $68.80 and Brent Crude was up 0.04 percent at $74.04.

Brent topped $75 a barrel at one point on Tuesday, for the first time since November 2014, and according to analysts, the possibility of sanctions on Iran has been the most significant driver of the oil price rally in recent weeks—the other being the virtually eliminated global oil glut combined with robust oil demand growth.

US crude oil production, for its part, is even more grim, which for the week ending April 13 increased to 10.540 million bpd, well on its way to 11 million bpd.

Related: The Bullish And Bearish Case For Oil

Distillate inventories saw another draw this week of 1.911 million barrels. Analysts had forecast a slightly smaller decline of 807,000 barrels.

Inventories at the Cushing, Oklahoma, fell this week, with the API reporting a 930,000-barrel draw.

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

By 4:37pm EST, the WTI benchmark was trading down 1.18 percent on the day to $67.93 while Brent was trading down 1.07 percent at $73.22.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Tom on April 24 2018 said:
    After tracking Weekly EIA Liquid Supply Estimate Numbers for over a year, I've learned one thing. Weekly numbers are not exact, and are often revised. So my advise would be, don't get uptight about weekly numbers. They are not that accurate.

    Can't help it, that's what I have learned.
  • Rich on April 24 2018 said:
    "Rattles the market" REALLY! What kind of headline is that? The API comes out after market close; what market are you referring to? What rattling do you mean... Do you people have any sense of what you are writing. Yes there was a build but not huge not even large and let's not forget it was a bigger than expected draw on gasoline and distillates. Oh yes and there was a draw at Cushing as well. A differential of this amount for an API report doesn't rattle the market. Maybe you can make that claim when the EIA report comes out tomorrow AND something happens in the market as a result.
  • Kr55 on April 24 2018 said:
    Still ripping through products and not even close to high demand season. Fun summer coming.

Leave a comment

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