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The American Petroleum Institute (API) on Tuesday reported an increase in crude oil inventories of 3.8 million barrels for the week ending November 20.
Analysts had predicted an inventory build-up of only 127,000 barrels, and for the short price due to the favorable news on the covid-10 vaccine over the last week or so, that probably means curtains.
In the past week, API reported an increase in oil inventories of 4.174 million barrels, after analysts predicted a build of 1.95 million barrels for the week.
Oil prices were trading on Tuesday afternoon ahead of the release of API data on another round of positive vaccine news. While the threat of declining demand for oil still looms over markets in general, the back-to-back announcements from pharmaceutical companies, notably Moderna and AstraZeneca, which are part of US President Trump’s Operation Warp Speed. The results show a high degree of efficacy for several vaccine candidates.
Looking ahead to Tuesday’s data release at 2:45 p.m. EDT, WTI had risen $ 1.82 (+ 4.23%) to $ 44.88, up about $ 4 a barrel over the week. The benchmark Brent index had risen that day by $ 1.74 at the time (+ 3.78%) to settle at $ 47.80, or about $ 4.50 per barrel for the week. .
U.S. oil production increased for the week ending Nov. 13, to 10.9 million b / d, according to the Energy Information Administration – 2.2 million b / d lower than the all-time high of 13.1 million b / d reached in March.
API reported an increase in gasoline inventories of 1.3 million barrels of gasoline for the week ending Nov. 20, compared to the build of 256,000 barrels the week before. Analysts expected a 614,000 barrels build for the week.
Distillate inventories were down 1.8 million barrels for the week, from last week’s 5.024 million barrels drawdown, while Cushing’s inventories fell 1.4 million barrels.
At 4:43 p.m. EDT, the benchmark WTI was trading at $ 44.69, while Brent crude was trading at $ 47.76.
By Julianne Geiger for OilUSD
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