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The American Petroleum Institute (API) on Tuesday reported an increase in crude oil inventories of 4.146 million barrels for the week ending November 27.
Analysts had predicted an inventory drawdown of 2.358 million barrels for the week.
The week before, API reported an increase in oil inventories of 3.8 million barrels, after analysts predicted a much smaller build of just 127,000 barrels.
Oil prices traded Tuesday afternoon ahead of the release of API data despite daily news of the progress of the Covid-19 vaccine, after OPEC ended its meeting without a resolution on its plans on Monday. production for 2021 and postponed a meeting scheduled for Tuesday until later in the week to give more time to deliberations on the thorny subject. OPEC finds itself in a precarious situation again – and make no mistake, it is imperative that the group hold the group together and present a united front no matter what plan they hatch. The fall in the price of oil on Tuesday is a small glimpse of what will happen to prices if the deal fails.
In the run-up to Tuesday’s data release at 2:48 p.m. EDT, WTI had fallen $ 0.80 (-1.76%) to $ 44.54, down about $ 0.30 a barrel over the week. The benchmark Brent index had fallen that day from then $ 0.49 (-1.02%) to $ 47.39, up about $ 0.40 per barrel for the week.
U.S. oil production increased for the week ending Nov. 20, to 11.0 million b / d, according to the Energy Information Administration – 2.1 million b / d below all-time high of 13.1 million bpd reached in March.
API reported an increase in gasoline inventories of 3.402 million barrels of gasoline for the week ending November 27, up from 1.3 million barrels the week before. Analysts expected a build of 2.386 million barrels for the week.
Distillate inventories were up 334,000 barrels for the week, compared to last week’s 1.8 million barrels draft, while Cushing’s inventories fell 132,000 barrels.
At 4:33 p.m. EDT, the benchmark WTI was trading at $ 44.56, while Brent crude was trading at $ 47.36.
By Julianne Geiger for OilUSD
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