Unexpected Crude Draw Fails To Move Oil Prices

The American Petroleum Institute (API) reported a surprise draw this week for crude oil of 4.496 million barrels, compared to analyst predictions of a 2.533 million barrel build.

U.S. crude inventories have shed some 76 million barrels since the start of 2021 and about 19 million barrels since the start of 2020.

In the week prior, the API reported a build in crude oil inventories of 7.757 million barrels after analysts had predicted a much smaller build of 1.367 million barrels.

Oil prices were trading down on Tuesday as Shanghai prepared to reopen factories from its strict lockdown, and the IMF slashed its global economic growth forecast. The IMF also cut China's GDP growth estimate for this year, referring to a "worsening" economic slowdown.

WTI was trading down 5.40% at $102.40 per barrel on the day at 3:31 p.m. ET—but up roughly $2 per barrel on the week. Brent crude was trading down 5.33% on the day at $107.10 per barrel on the day—but up $2.50 per barrel on the week.

U.S. crude oil production stayed at 11.8 million bpd for the week ending April 08. Crude production in the United States is still down 1.3 million barrels per day from pre-pandemic times.

This week, the API reported a build in gasoline inventories at 2.933 million barrels for the week ending April 15—after the previous week's 5.053-million-barrel draw.

Distillate stocks saw a decrease in inventory of 1.652 million barrels for the week on top of last week's 4.961-million-barrel decrease.

Cushing saw a 93,000-barrel build this week. Cushing inventories rose to 26.337 million barrels as of April 8, according to EIA data—down from 59.2 million barrels at the start of 2021, and down from 37.3 million barrels at the end of 2021.

At 4:43 pm, ET, WTI was trading at $102.60 (-5.18%), with Brent trading at $107.20 (-5.26%).

By Julianne Geiger for Oilprice.com

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