• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 8 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 11 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 30 mins Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 1 hour Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 19 mins Theresa May to Step Down
  • 12 hours Total nonsense in climate debate
  • 12 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 15 hours Will Canada drop Liberals, vote in Conservatives?
  • 1 day IMO 2020 could create fierce competition for scarce water resources
  • 15 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 15 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 7 hours Australian Voters Reject 'Climate Change' Politicians
  • 11 hours Apple Boycott in China
The Oil Price Tug Of War

The Oil Price Tug Of War

Oil markets have been relatively…

Surprise Crude Oil Draw Sends Oil Prices Up

rig

The American Petroleum Institute (API) reported a surprise draw in crude oil inventories of 2.6 million barrels for the week ending March 8, coming in significantly under analyst predictions that crude oil inventories would build by 2.655 million barrels.

Last week, the API reported a large surprise build in crude oil of 7.29 million barrels. A day later, the EIA supported API’s account of a large gain, estimating that crude inventories had climbed by 7.1 million barrels.

Including this week’s data, the net draw is just 640,000 barrels for the ten reporting periods so far this year, using API data.

API

(Click to enlarge)

Oil prices were up slightly on Tuesday prior to the data release on word that Saudi Arabia would continue to restrict exports to the United States and as Venezuela’s status grew even more grim with a weekend blackout that halted already restricted exports from its main terminal. Neither factor held enough sway to move prices too high, as US oil production continues unabated.

The WTI benchmark at 2:32 pm EST was trading up on the day by $0.09 (+0.14%) at $56.87, roughly flat week on week. The Brent benchmark was trading up $0.07 (+0.11%) at $66.65, also flat week on week.

Related: Is This A Precursor For Peak Oil Demand?

The API this week reported a large draw of 5.8 million barrels in gasoline inventories for the week ending March 1. Analysts estimated a draw in gasoline inventories of 2.532 million barrels for the week.

US crude oil production as estimated by the Energy Information Administration showed that production for the week ending March 1—the latest information available—held fast at an average of 12.1 million barrels per day–the latest in a long string of highs for the United States.

Distillate inventories increased by 195,000 barrels, compared to an expected draw of 1.858 million barrels for the week.

Crude oil inventories at the Cushing, Oklahoma facility fell by 1.1 million barrels for the week.

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

By 4:41pm EST, WTI was trading up at $56.93 and Brent was trading up at $66.71.

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