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Oil Inventories Fall by 2M Barrels Last Week: API

Published 02/08/2022, 04:39 PM
Updated 02/08/2022, 04:51 PM
© Reuters.
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By Yasin Ebrahim

Investing.com - U.S. crude stockpiles fell more than expected last week just as traders price in the prospect of increased global supplies as the U.S. and Iran are believed to be nearing a conclusion on talks concerning a nuclear deal that could lift energy export sanctions on Tehran.  

West Texas Intermediate, the U.S. benchmark, traded at $89.80 barrel on the news, after settling down 2.2% at $89.36 a barrel.

U.S. crude inventories fell by 2.0 million barrels for the week ended Feb. 4. That compared with a draw of 1.6 million barrels reported by the API for the previous week. Economists were expecting a draw of about 675,000 barrels. 

The API data also showed that gasoline inventories slipped by 1.1 million barrels last week, and distillate stocks decreased by 2.2 million barrels.

The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies rose by about 369,000 barrels last week.

 

Latest comments

Chance of a Deal between Iran and US is close to 0
Present reality = (A) no Iran deal + (B) unexpectedly large inventory decrease + oil prices at levels as if (A) and (B) were opposite from reality = GO LONG
Thanks brandon (did i do this)
There is no deal yet and a chance of deal with Iran less 50%
 I've always maintained that it was hardly intelligent to shut down Keystone and that was the first shot across the bow that did in any control that he may have desired over oil prices. The left and green lobbies could have been managed more efficiently. We all knew that Biden had no intention of enforcing Trump's sanctions which were the height of (insa)nity in itself that sent the Mullahs down the path pf proliferation. They were complying somewhat with the IAEA till then. I don't think the US can't stop any (cr)azy regime from having nuclear capability? Were we able to stop (Ro)cket Man's dad who planted the seeds to Pyongyang's atomic dreams? Likewise, we are not going to stop Iran from having it; we can only SLOW them down by using the sanctions threats and carrots alternatively. So, no reason for Biden to have waited one year to do this. Surveillance should've been hiked 3 times and the sanctions threat kept over them to prevent any acceleration of the program.
 I've always maintained that it was hardly intelligent to shut down Keystone and that was the first shot across the bow that did in any control that he may have desired over oil prices. The left and green lobbies could have been managed more efficiently. We all knew that Biden had no intention of enforcing Trump's sanctions. So, no reason for Biden to have waited one year to do this. Surveillance should've been hiked 3 times and the sanctions threat kept over them to prevent any acceleration of the program.
 I don't think the US can't stop Iran from having nuclear capability. We were not able to stop the Kims. Likewise, we are not going to stop Iran from having it; we can only SLOW them down by using the sanctions threats and carrots alternatively. The Iranians were complying somewhat with the IAEA till Trump sent them all the way down the path of proliferation.
Iran is already moving oil, that speculation that there will be a significant Increase from them if a deal is reached is absurd.
Also, Iran will be happy to sell at $20 below Saudi basket just to steal market share. Lots of permutations here.
Aramco is hastening refinery talks with China to try and seal more market share in the most important market. If the Iranians are smart, they'll get the Chinese to invest in more Iranian production.
Of course, there's no deal yet and the odds aren't clearly in favor of one. But I covered the 2015 talks. This is exactly how it begin in the last round -- one step forward, two behind. But finally it happened. I'm not holding my breath this time but there's a remote chance it will happen.
Iran is already moving oil, that speculation that there will be a significant Increase from them if a deal is reached is absurd.
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