Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Oil Down Over Smaller-Than-Expected Crude Oil Draw, Gasoline Build

CommoditiesOct 22, 2020 12:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – Oil was down on Thursday morning in Asia, continuing losses from the previous session. The U.S. Energy Information Administration (EIA) reported a smaller-than-expected draw in U.S. crude oil supplies, adding to worries of an oversupply as fuel demand continues to weaken.

Brent oil futures were down 0.41% to $41.56 by 12:20 AM ET (4:20 AM GMT). WTI futures fell 0.50% to $39.83, slipping below the $40 mark.

EIA data released on Wednesday showed a 1.001 million-barrel draw for the week to Oct. 16, smaller that the predicted 1.021 million-barrel draw and much smaller than the previous week’s 3.818 million-barrel draw.

Wednesday’s data also showed that a 1.895 million-barrel build in gasoline inventories, against the 1.829 million-barrel draw predicted and the previous week’s 1.626 million-barrel draw.

“The latest EIA report showed an unexpected increase in gasoline inventories, which came at the same time as reduced gasoline output because of refinery outages due to Hurricane Delta. So the implication is gasoline demand is pretty soft,” National Australia Bank (OTC:NABZY) head of commodity research Lachlan Shaw told Reuters.

The American Petroleum Institute reported a surprise 584,000-barrel build in the week to Oct. 16 on Tuesday.

Investors remain concerned about weak fuel demand as the number of COVID-19 cases in Europe and some U.S. states continues to climb. Fears were also exacerbated by China’s decision to restrict outbound travel to curb the spread of the virus.

Diminishing hopes that the U.S. Congress would be able to pass the latest stimulus measures before the Nov. 3 election also contributed to a worsening outlook.

“The resurgence in COVID-19 cases is seeing the U.S. motorist increasingly putting the brakes on. This makes the negotiations on a U.S. stimulus package even more important,” ANZ Research said in a note.

However, NAB’s Shaw warned that even if Congress approved the measures in time, any uplift would likely be temporary.

“It might improve the demand tone for a week or two, but with the COVID-19 spread accelerating there are headwinds there,” he said.

Oil Down Over Smaller-Than-Expected Crude Oil Draw, Gasoline Build

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Tony Coll
Tony Coll Oct 22, 2020 5:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Covid is being used purely as a manipulator. President survives, even in his unhealthy state and advanced age, and people are still falling for this garbage. It's being used as the excuse for everything, inhibiting freedoms, increasing the wealth gap, destroying small business competition, and passing an oversized stimulus package that will line the pockets of federal and state government officials.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email