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Oil Inventories Dropped by 5M Barrels Last Week - EIA

CommoditiesMay 20, 2020 10:34AM ET
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© Reuters.

By Kim Khan 

Investing.com - Stockpiles of U.S. crude dropped for the second straight week, the Energy Information Administration reported Wednesday

Oil prices remained higher following the report, with WTI futures climbing more than 3%.

Oil inventories fell by about 5 million barrels for the week ended May 15, the EIA said. That compared with expectations for a build of about 1.15 million barrels, according to forecasts compiled by Investing.com.

Cushing hub inventories fell another 5.8 million barrels, almost aligning with the decline in total inventories.

“I think we can take our eyes off Cushing as it’s no longer a hot button issue -- the tanks aren’t going to blow there anytime in the near future,” Investing.com analyst Barani Krishnan said.

Gasoline inventories gained unexpectedly by 2.8 million barrels, versus forecasts for a drop of about 2.1 million barrels. Distillate stockpiles rose by 3.8 million barrels, compared with expectations for a build of about 1.43 million barrels.

“The more forward-looking meaningful numbers are in products,” Krishnan said. “Gasoline shows that refiners continued to ramp up gasoline production last week in anticipation of some return at least in weekend road travel for the upcoming Memorial Day weekend.”

“The EIA may have a lower gasoline production number for last week but that belies the fact that refiners are still in a higher output mode versus the absolute decline in demand seen last week,” he added “The Memorial Day weekend will be the first real stress test of $30 WTI.”

“We’ve gone up more than 230% since April 28 low and something has to give at this point if commensurate demand doesn’t kick in.”

Oil Inventories Dropped by 5M Barrels Last Week - EIA
 

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Comments (10)
Alan Rice
Alan Rice May 20, 2020 1:44PM ET
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Time to gas up the Hummer !!!
MIGUEL ANGEL SANCHEZ MORALES
MIGUEL ANGEL SANCHEZ MORALES May 20, 2020 12:34PM ET
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Somebody have news about the oil facilities ?? No news since beginning of the month and the price of the oil still increases per day.
Umair Mukhtar
Umair Mukhtar May 20, 2020 11:26AM ET
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Oil usd 40 coming soon
Alan Rice
Alan Rice May 20, 2020 11:26AM ET
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DO--or die. ($300 USD WTI MIGHT slow our demise ??)
David Bennett
David Bennett May 20, 2020 11:04AM ET
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great! keep those rigs laying on the ground.
Eda Mucha
Eda Mucha May 20, 2020 11:02AM ET
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yeah yeah.. everything is going to be great again, America! just keep printing more money! and if something goes wrong with your economy, to claim a war to sovereign country will help you get back on track..
Notvery Goodathis
Peteymcletey May 20, 2020 10:56AM ET
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Inventories going make up makes sense. Refineries coming back online and all.
James Harvey
TheRealGreyGhost May 20, 2020 10:54AM ET
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I also noticed that gas inventories went up, while oil inventories went down. But not by proportional amount.
James Harvey
TheRealGreyGhost May 20, 2020 10:52AM ET
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Some have speculated that much of the drop in oil inventory was oil put into national reserve. Which really doesn't reflect actual retail demand. Many professional traders would know this.
Jeremy Williams
Jeremy Williams May 20, 2020 10:44AM ET
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The fake news keeps coming
Pasi Kaunisto
Pasi Kaunisto May 20, 2020 10:40AM ET
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funny reaction to the price
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Thibault Santy
Thibault Santy May 20, 2020 10:40AM ET
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Sorry im new to finance. But when inventories are smaller than expected, and demand is larger than expected, why is the price dropping shortly after that news?
Kalai arasan KALAI
Kalai arasan KALAI May 20, 2020 10:40AM ET
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Thibault Santy  I have the same doubt too... Someone pls clarify...
Pasi Kaunisto
Pasi Kaunisto May 20, 2020 10:40AM ET
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Thibault Santy thats my point i dont get it
Rc Cf
Rc Cf May 20, 2020 10:40AM ET
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Already factor in I guess?
Nick Nah
Nick Nah May 20, 2020 10:40AM ET
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Thibault Santy   I think inventories for gasoline and distillates that rose by 2.8 and 3.8, respectively, has some effect.
 
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