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The American Petroleum Institute (API) on Tuesday reported an increase in crude oil inventories of 2.562 million barrels for the week ending Jan. 15.
Analysts had predicted an inventory drawdown of 1.167 million barrels for the week.
The previous week, API reported an oil inventory drawdown of 5.821 million barrels, after analysts predicted a drawdown of 2.266 million barrels.
Oil prices were mixed on Wednesday ahead of the data release, with WTI rising and Brent falling. A widespread lockdown in China that has sequestered millions of residents for fear of an increase in coronavirus cases there, the IEA’s grim outlook on oil demand, a slow global rollout of the coronavirus vaccine that has been plagued by technical glitches as well as reports of adverse effects and a lingering upturn in the United States, as investors dream of increased economic activity and are encouraged to invest money in riskier ventures – like petroleum – all contributed to a muddy water effect for the product.
An hour before Wednesday’s data release, WTI was up $ 0.30 on the day (+ 0.57%) to $ 53.28, up $ 0.015 from last week.
The benchmark Brent index, on the other hand, had fallen on the day by $ 0.05 at that time (-0.09%) to $ 56.55, down $ 0.70 on the week.
U.S. oil production has stagnated at 11.0 million bpd, according to the latest data from the Energy Information Administration, and it is unlikely that there will be a significant increase in U.S. oil production as inventories remain high – more than a few million barrels could correct.
The API reported an increase in gasoline inventories of 1.129 million barrels for the week ending Jan. 15, compared to the construction of 1.876 million barrels the week before. Analysts were expecting a build of 2.771 million barrels for the week.
Distillates, which saw an increase of 816,000 barrels for the week, add to last week’s increase of 4.433 million barrels, while Cushing’s inventories saw the only drop this week, falling 4.285 million barrels.
At 4:34 p.m. EDT, the benchmark WTI was trading at $ 53.28, while Brent crude was trading at $ 55.97.
By Julianne Geiger for OilUSD
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