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Oil Inventories Rise by 7.5M Barrels Last Week: API

Published 07/21/2020, 04:42 PM
Updated 07/21/2020, 04:47 PM
© Reuters.

By Yasin Ebrahim

Investing.com - U.S. crude stockpiles crude inventories rose by 7.5 million barrels last week, according to an estimate released Tuesday by the American Petroleum Institute.

Analysts expect that the Energy Information Administration will report a draw of 2.1 million barrels when it issues numbers tomorrow morning. The EIA numbers are due at 10:30 AM ET (14:30 GMT).

Crude Oil WTI Futures were up 1.71% following the release, after settling up $1.15, or 2.82%, at $41.96 per barrel.

Latest comments

You have to look at the trend. Over the last 4 weeks it was -16.4782 and + 9.544. Which is a difference of -6.9342 million barrels per day. Still bullish until the 4 week trend changes. Oil will continue trend up like it has been.
the US needs oil over $40 to render shale oil production viabile. the variations in stock reporting are just so they wouldn't predict the trend
 Chapter 9/11 bankruptcy protection is an odd animal. It allows U.S. drillers to continue producing to pay their leases while they restructure their finances. Also, there's evolution in technology all the time. That's why even with the drop in rigs to record lows, we still produce more oil per rig today than in 2014. The US driller is extremely resilient -- he will continue producing, trust me, even at $35.
Fair enough! On the same page.. Still too much production. What I was pointing out was the there are interests in fraudulent reporting to keep it high
sounds like too much fraud in reporting
imports
Whoa, this. if confirmed, is a perfect roll-back of the previous week's 7.5 mln draw. $42 WTI?
 $40 and triple digits oil is like a kitchen step stool and a crane. That's the price gulf between. Nobody thrashed oil, except the greedy head honcho of Arab which keeps holding the world at a ransom to do their bidding for $80 and above oil. You know what's great about shale? It's virtually free of this so-called nonsense that you claim. Nobody created this "nonsense" other than the Saudis. They turned the taps on full in March simply because the Russians decided they wanted to produce according to the needs of their customers. Given their dominant position once as a producer, the Saudis controlled OPEC for 55 years and made sure the rest of the non-energy producing world paid dearly to finance the luxurious Saudi lifestyles. All that changed in 2014 when shale came into its own.
 Since 2014, the Saudis have been trying to find a way to make the US drillers play ball with them and everything failed because America's free market dynamism doesn't need the B.S. called National Oil Corporation that's prevalent all over OPEC. The Saudis finally got their opportunity when Trump capitulated this year to broker a deal between them and the Russians to try and bring the market back up. And what do the Saudis do after 2 months? Roll back on output cuts. To me, it's premature because the impact of the downturn hasn't fully been reversed. And the data we have seen in recent weeks only proves how volatile things are. For your information, regardless what "Trump sir" thinks or wants, the market moves to larger American needs and usage. And there is not enough clarity on that yet.
 Last but not least: Don't underestimate the power of shale. Chapter 9/11 bankruptcy protection is an odd animal. It allows U.S. drillers to continue producing to pay for their leases while they restructure their finances. Also, there's evolution in technology all the time. That's why even with the drop in rigs to record lows, we still produce more oil per rig today than in 2014. The US driller is extremely resilient -- he will continue producing, trust me, even at $35.
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