Energy Analytics

Prices Drop Due To Crude Oil Inventory Build

byEnverus

[contextly_auto_sidebar]

US crude oil stocks increased by 5.7 MMBbl. Gasoline and distillate inventories decreased 3.0 MMBbl and 1.0 MMBbl, respectively. Yesterday afternoon, API reported a crude oil build of 0.6 MMBbl alongside gasoline and distillate builds of 1.6 MMBbl and 1.9 MMBbl, respectively. Analysts were expecting a crude oil build of 0.7 MMBbl. Total petroleum inventories posted a decrease of 2.2 MMBbl.

US crude oil production remained unchanged last week, per the EIA’s estimates. Crude oil imports were up 0.84 MMBbl/d last week to an average of 6.7 MMBbl/d. Refinery inputs averaged 16.0 MMBbl/d (0.13 MMBbl/d more than last week’s average), leading to a utilization rate of 87.7%. Prices are pressured by crude oil build and stocks in Cushing posting a 31.9 MMBbl build. Prompt-month WTI was trading down $0.29/Bbl, at $55.25/Bbl; at the time of writing.

Crude prices have been retracting since last week after nearly reaching their one-month-high levels. The boost in prices last week was due to reports that OPEC+, led by Saudi Arabia, could reach an agreement in December to potentially cut more supply from the market, as well as positive sentiment around China increasing its oil import quota and optimism surrounding the US – China trade deal. Although prices gave up some of their gains from last week, they are still near their monthly highs because of support from the optimism surrounding a deal materializing between the world’s two largest economies, the upcoming OPEC+ meeting in December, and possible tensions in the Middle East. While the bullish sentiment in the market may have increased amid the factors mentioned, conflicting reports from Russia that the country may not be interested in participating in another round of supply cuts as well as the lingering threat of slowing economic growth and demand growth for oil products are continuing to pressure prices, and these factors will keep a lid on prices. The market will pay close attention to any news regarding the US – China trade deal negotiations and any developments on the upcoming OPEC+ meeting in December. Prices are expected to trade in the narrow range of $53/Bbl-$57/Bbl for the near term as any positive news around these developments may cause prices to challenge the 200-day average just above last week’s close at $57.02/Bbl, while any negative news could pressure prices to $53/Bbl levels, where it will likely find selling.

Petroleum Stocks Chart

Enverus

Enverus

Energy’s most trusted SaaS platform — creating intelligent connections that uncover insights and opportunities to deliver extraordinary outcomes.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

Enverus Press Release - Enverus adds Energy Transition solutions around $3.5T/year sector
Power and Renewables
ByEric Palmer

Over the last seven days, the Enverus ERCOT P&R forecast has accurately predicted the 630__B constraint (KLNSW-HHSTH 138 kv with contingency DSALKLN5) in ERCOT.  While it is fundamentally driven by high wind and solar generation, there were two transmission outages...

Enverus Press Release - The surprisingly balanced global LNG market
Business Automation
ByEnverus

Being a supplier in the oil and gas business is hard. You must ride the cycle of boom and bust, differentiate yourself in an incredibly competitive market and make sure your financial fundamentals are sound.

Enverus News Release - Banking on Buzios’ oil supply
Intelligence Trading and Risk
ByEnverus

Enverus Intelligence® Research holds the position that global oil demand will not peak or decline before the end of this decade. EIR’s analysis offers a distinct and unbiased viewpoint, diverging from the two benchmarks forecasters; OPEC and the International Energy...

Enverus Press Release - From insights to injections: CCS Class VI permit applications surged 500%
Energy Analytics Energy Transition
ByGraham Bain

The Enverus Intelligence® Research (EIR) Subsurface Innovation Team attended AAPG’s CCUS 2024 conference in Houston March 11-13. The conference, which also brought together SPE and SEG membership, hyped up the need for CCUS to offset the demand for fossil fuels,...

product-knowledge
Intelligence Operators
ByErin Faulkner

E&P activity targeting the Cleveland formation in the Anadarko Basin more than doubled in 2023 with 46 new wells reaching first production, compared to 20 in 2022 and similar levels the previous two years.

summer-outlook-pjm
Energy Transition
ByRyan Notacker

Renewable fuel uptake has surged in California in recent years, contributing to a 141% increase in the California Low Carbon Fuel Standard (LCFS) credit bank surplus and resulting in a drop in credit prices from ~$185/tonne to $75/tonne from 2019...

Enverus Blog - Coterra’s big Permian projects defy degradation worries
Intelligence Oilfield Services
ByJoseph Gyure, Editor, Enverus Intelligence

In the biggest oilfield services transaction since 2016, SLB agreed to acquire ChampionX Corp. for $7.76 billion in stock, bringing an industry leader in production chemicals into the OFS giant’s fold. ChampionX’s $420 million in net debt brings the transaction...

drilling-services-professional
Geoscience Analytics
ByDai Jones

Offshore drilling is a complex and multifaceted process essential for accessing oil and gas reserves beneath the seabed. Exploration drilling is the initial phase, crucial for identifying potential oil or gas reservoirs. It involves the deployment of mobile drilling units...

team
Operators
ByBryn Davies

Did you know that Enverus now has 18 offices around the world, with the most recent addition of the Brno office in Czechia

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert