Higher Prices Occur Due to Enormous Crude Oil Inventory Draw

Higher Prices Occur Due to Enormous Crude Oil Inventory Draw

The American Petroleum Institute (API) has predicted a substantial crude oil inventory draw of 11.1 million barrels for the week ending August 22, in comparison with analyst expectations of a 2.112-million-barrel draw.

The inventory draws this week provides onto last week’s draw in crude oil inventories of 3.45 million barrels, based on API information. The EIA estimated that week that there was an inventory draw of 2.7 million barrels.

After at present’s inventory transfer, the net draw for the year is 19.08 million barrels for the 35-week reporting period so far, utilizing API data.

Oil prices have been trading up on Tuesday before the data release despite the appearance that the United States might be softening its stance on the Iranian nuclear deal and the next oil exports that would be unleashed on the market in the rather unlikely event that Iran vs. the West showdown wraps up in the quick form. It additionally ignored information from China that it could seek to increase its domestic demand for products to weather the tariffs imposed by U.S. strong-arming, indicating China’s future unwillingness to give up ground within the trade talks.

At 3:42 pm EST, WTI was trading up $1.33 (+2.48%) at $54.97, or about $1.25 down from this time last week. Brent was trading up $0.89 (+1.53%) at $59.01–$1.10 down from last week’s ranges.

The API this week reported a 349,000-barrel draw in gasoline inventories for the week ending August 22. Interpreters estimated a draw in gasoline inventories of 388,000 barrels for the week.

Distillate inventories fell by 2.5 million barrels for the week, whereas inventories at Cushing fell by 2.4 million barrels.

U.S. crude oil production as estimated by the Energy Information Administration confirmed that production for the week ending August 15 stayed the identical at 12.3 million BPD, just 100,000 BPD off the all-time excessive of 12.4 million BPD.

The U.S. Energy Information Administration statement on crude oil inventories is due to be released at its frequently scheduled time on Wednesday at 10:30 am EST.