• 3 minutes Electric cars may make driving too expensive for middle classes, warns Vauxhall chief
  • 6 minutes Natural gas mobility for heavy duty trucks
  • 12 minutes Colonial pipeline hack
  • 5 hours U.S. Presidential Elections Status - Electoral Votes
  • 3 hours Texas Power Outage Danger Until June 18th. Texans told to conserve energy!
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 18 hours Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 2 days Federal Judge Says Biden Probably Wrong for Halting Drilling on Federal Land
  • 4 days And now, hybrid electric locomotives...

Surprise Crude Build Sends Oil Prices Lower

The American Petroleum Institute (API) reported on Tuesday a build in crude oil inventories of 2.70 million barrels for the week ending December 18.

Analysts had predicted an inventory draw of 3.135 million barrels for the week.

In the previous week, the API reported a build in oil inventories of 1.973-million barrels, after analysts had predicted a draw of 1.937 million barrels.

Both Brent and WTI were down on Tuesday afternoon before the data release, despite earlier vaccine optimism and a new stimulus package that was approved in the United States. Dragging on oil prices is a new strain of Covid-19 that caused massive border closures throughout the world in an effort to contain the spread of the mutated strain.

In the run-up to Tuesday's data release, at 2:15 p.m. EDT, WTI had fallen by $0.78 (-1.63%) to $47.19, down $.30 per barrel on the week. The Brent crude benchmark had fallen on the day $0.62 at that time (+1.22%) to $50.29—down nearly $0.40 per barrel on the week.

U.S. oil production fell to 11.0 million bpd for the week ending December 11, according to the Energy Information Administration—2.1 million bpd lower than the all-time high of 13.1 million bpd reached in March.

The API reported a small draw in gasoline inventories of 224,000 barrels of gasoline for the week ending December 18—compared to the previous week's 828,000-barrel build. Analysts had expected a 1.210-million-barrel build for the week.

Distillate inventories were up by 1.03 million barrels for the week, compared to last week's 4.762-million-barrel increase, while Cushing inventories rose this week by 341,000 barrels.

At 4:33 p.m. EDT, the WTI benchmark was trading at $46.92, while Brent crude was trading at $49.98 as the latter slipped below $50.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News