Oil Prices Slip On Surprise Inventory Build

Crude Inventory Report

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This compared with an inventory build of half a million barrels for the previous week and production averaging 4.5 million bpd. The price of crude is determined by supply and demand technicals, as is the case with other commodities. Therefore, the EIA Petroleum Status Report is a reflection of current crude-oil price trends.

Energy Information Administration both provide weekly crude oil inventory reports. There are two crude oil inventory reports released each week in the United States. One is from the American Petroleum Institute and the other is from the U.S. The API is a national trade association whereas the EIA is an agency of the U.S. The other two factors of the inventory report are gasoline and distillate numbers. They may not have as much of an influence on the crude oil price as the DOE number.

In this example, I will show you exactly how we traded the report on Wed March 21st, 2018. We rely on a more sophisticated news source which reads out the numbers in audio. This gives you time to action your trade rather than reading through report tables. The market moves really fast on this news, and you have to prioritize what information you are looking at.

Oil Prices Near Session Highs; Eia Reports A Weekly Rise For U S. Crude Supplies, But Distillate Stocks Drop

The EIA Petroleum Status Report is published every Wednesday by the Energy Information Administration, an agency within the U.S. It details the level of crude-oil reserves that the U.S. holds, as well as the amount of crude and related products it produces, both domestically and abroad.

This liquidity can create some monstrous day trading opportunities for the educated trader. The Energy Information Administration is a government agency responsible for collecting energy data, conducting analysis and making forecasts.

Investment analysts and futures traders will study the report, and use its data to make projections regarding energy prices and production levels. Similarly, some analysts who work for energy companies will use the news to glean data from the report to help inform their long-term strategy and business decisions. The media also frequently uses the EIA report in reporting about the energy industry and prices which directly affect consumers, such as heating oil and gasoline.

Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements. Myra P. Saefong, assistant global markets editor, has covered the commodities sector for MarketWatch for 20 years. She has spent the bulk of her years at the company writing the daily Futures Movers and Metals Stocks columns and has been writing the weekly Commodities Corner column since 2005. Exploration and reserves, storage, imports and exports, production, prices, sales. Gold prolonged its consolidative price moves for the second straight session on Wednesday.

Today’s inventory build was expected to be smaller, 11.676 million barrels. Biodiesel is a type of fuel made from organic oils, such as vegetable oil. It is often seen as an environmentally-friendly alternative to petroleum. The 1979 energy crisis was an event triggered by the Iranian Revolution that led to widespread panic about gasoline shortages in the U.S. A crack is a trading strategy that is used in energy futures to establish a refining margin. The EIA Petroleum Status Report highlights section provides production data for most line items on a trailing four-week basis.

Api Reports A More Than 4 Million

The upward revision stems from tightened supply outlooks during the first half of the year after the OPEC+ group unexpectedly extended the bulk of their output cuts through April at the March 4 meeting. The ICE New York Harbor front month RBOB crack versus Brent rallied to around $18.39/b in afternoon trading, on pace for the highest close since Aug. 31, 2017. The ICE US dollar index fell below 92 in afternoon trading, retreating from a three-and-half month high of 92.334 on March 8. Nadex binary options and spreads can be volatile and investors risk losing their investment on any given transaction. However, the limited-risk nature of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Trading on Nadex involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere.

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Brent crude futures fell 10 cents, or 0.2%, to $68.29 a barrel, after initially gaining as much as 23 cents. In the previous week, the API estimated a large build in crude oil inventories of 11.938 million barrels, while the EIA’s estimates painted an even scarier picture, reporting a build of 15.2 million barrels for the week. The American Petroleum Institute estimated on Tuesday another large crude oil inventory build of 13.143 million barrels for the week ending April 10 as demand destruction stemming from the coronavirus wears on.

Volkswagen’s shares surged more than 9% on Tuesday, lifting its market value towards $150 billion as the world’s second-largest carmaker gave more details about its ambitious expansion in electric driving. A day after unveiling plans to build half a dozen battery cell plants in Europe, the German company said it aimed to more than double deliveries of electric vehicles this year. “Our good performance in 2020, a year dominated by crisis, will give us momentum for accelerating our transformation,” Chief Executive Herbert Diess said in a statement. European stocks opened higher on Tuesday, chasing Monday’s momentum from Wall Street as concerns over the rollout of COVID-19 vaccines across the continent continue. One of the leading independent retailer of motor fuel and convenience merchandise in the United States, the company has a Zacks Rank #1 . Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

The Brent crude benchmark had risen on the day $0.52 at that time (+0.82%) to $65.83—up more than $1 on the week. Stripe’s valuation has more than doubled from a year ago to $95 billion, putting the fintech into the upper echelons of the world’s most valuable payment companies. Despite the highflying fundraising round, age still comes before beauty in the business of digital transactions.

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The Energy Information Administration reported last week that U.S. crude inventories rose by 13.8 million barrels for the week ended March 5. That followed a hefty 21.6 million-barrel climb the week before as domestic refinery activity continued to recover from mid-February winter storms in Texas. Supplies also rose by 1.3 million barrels for the week ended February 19. The API reported a small build in gasoline inventories of 66,000 barrels for the week ending February 19—after the previous week’s 3.9-million-barrel build.

  • This is one of our favorite weekly trades in our daily live trading room.
  • Also, the report details the per-gallon prices of West Texas Intermediate crude, regular unleaded gasoline, No. 2 heating oil, and propane.
  • EUR/USD stays steady around 1.1900, after a three-day losing streak, during the initial Asian session trading.
  • API reportedly saw a 718,000 barrel drop in gasoline inventories and a 1.88 million barrel fall in distillate stocks.
  • European stocks opened higher on Tuesday, chasing Monday’s momentum from Wall Street as concerns over the rollout of COVID-19 vaccines across the continent continue.

The Holiday Schedule Alert is sent on Friday and provides information on the world’s regional and national holidays impacting the publishing of our assessments, market reports and news wires over the week ahead. Last week, inventories held in Cushing decreased by 3.0 million barrels. Distillate stocks saw a decrease of 4.489 million barrels for the week, after last week’s 3.5-million-barrel decrease.

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That’s the power of trading the weekly crude oil inventory report with our TRADEPROs. It comes down to simple supply and demand when assessing the crude oil inventory report. Since there is a scarcity of a product, consumers are willing to pay more.

On a bullish note though, the report revealed that refined product inventories – gasoline and distillate – both fell from their previous week levels. Energy Department’s inventory release showed that crude stocks recorded a weekly decrease that was smaller than anticipated. The report further revealed that refined product inventories – gasoline and distillate – both rose from their previous week levels. While it may take time for prices of some products to balance as the market reacts to changes in supply and demand, in the case of oil, the price adjustments can be instantaneous.

Nigerias Lawsuits Against Shell Could Cause Oil Major Exodus

With the exception of jet, most other indicators of production, consumption, and inventories should return to normal by the end of the first quarter, rather than the end of the second, as seemed likely last autumn. Bullion prices halted declines with progress on $1.9 trillion stimulus package. However, the precious metals are still under selling pressure due to firm bond yields and stronger dollar which may limit the upside for short term. The Trading Economics Application Programming Interface provides direct access to our data.

Oil futures suffer a second straight day of losses on Tuesday as traders await data that may reveal a third weekly climb in U.S. crude inventories. But oil price gains were likely limited as the market contends with the surge in coronavirus cases across major economies that raised concerns about a deterioration in the demand outlook. The resumption of supply from Libya, an OPEC+ member that is exempt from production caps, has added to the bearish sentiment in the market. Most of the upside pressure can be attributed to data from the Energy Information Administration that showed domestic oil stocks fell more than projected for the week ending Oct 9. Additional catalyst came from supply disruptions from Hurricane Delta that hit the U.S. Gulf Coast, which is responsible for 17% of the nation’s total oil production and nearly half of its refining capacity. Energy companies including the Zacks Rank #1 Equinor EQNR, Chevron CVX, Murphy Oil MUR, Royal Dutch Shell RDS.A and BP plc BP had their offshore oil and gas operations hampered.

What Is The Eia Petroleum Status Report

They also expect inventory increases of 1.4 million for gasoline and 2.2 million for distillates. February West Texas Intermediate crude clg21was at $49.88 a barrel in electronic trading, compared with Tuesday’s settlement at $49.93 on the New York Mercantile Exchange. Crude oil prices have dropped more than $1, retreating from two-month highs at $33,70, to $32.65 lows after the Energy Information Administration reported that US crude oil stocks declined by 5 million barrels during the week of May 25.

Reserves, production, prices, employment and productivity, distribution, stocks, imports and exports. WTI oil prices remain positive after having rallied 70% over the last month. West Texas Intermediate crude for April delivery fell 59 cents, or 0.9%, to settle at $64.80 a barrel on the New York Mercantile Exchange. The May WTI contract ended the session at $64.86 and has traded at a premium to the nearby month for three sessions, a condition known as contango, which can encourage investors to put oil into storage for later sale. The crude supply cover was up from 24.6 days in the previous week to 25.3 days. The severe weather is likely to lead to aggregate crude production losses of million barrels, according to S&P Global Platts Analytics.

When oil inventories go up, traders may question the demand for oil at the current price and immediately sell their positions, causing a price retreat. US crude oil inventories fell by 7.258 million barrels in the week ended February 12th, 2021, a fourth consecutive week of decline and compared to market forecasts of a 2.429 million drop, according to the EIA Petroleum Status Report. Meantime, gasoline inventories increased by 0.672 million barrels, while markets had forecast a larger 1.397 million advance. US crude oil inventories rose by 1.285 million barrels in the week ended February 19th, 2021, ending a four-week period of declines and defying market forecasts of a 5.19 million drop, according to the EIA Petroleum Status Report.

The relationship between supply and demand is one of the fundamental concepts of economics, and it is no more clear than comparing how the ebb and flow of crude oil inventories affect the commodity market. Crude oil inventories refers to the amount of unrefined petroleum held in storage by governments and oil producers. Supply and demand is important to understand as the more supply that keeps with demand, leads to lower prices. If demand begins to threaten supply levels, crude oil prices increase. The American Petroleum Institute reports inventory levels of US crude oil, gasoline and distillates stocks. The figure shows how much oil and product is available in storage.The indicator gives an overview of US petroleum demand. The Energy Information Administration’s Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms.

Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

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