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Oil Stockpiles Plunge 9.9 Million Barrels: EIA

Published 01/27/2021, 09:55 AM
Updated 01/27/2021, 11:07 AM
© Reuters.

Investing.com -- U.S. oil stockpiles fell by more than expected in the latest week, the Energy Information Administration said on Wednesday.

Crude inventories fell 9.9 million barrels last week, compared with analysts' expectations for a build of 430,000 barrels.

"Another huge uptick in U.S. crude exports, along with a big flow out of Cushing and a million-barrels-per-day drop in imports, have combined to bring about this outsized drawdown in crude stocks," said Investing.com analyst Barani Krishnan. "The volatility in the EIA’s weekly releases have really been staggering and there’s just no trend that’s being set here, especially considering that just a week ago, we had a build of more than four million barrels in crude. This is why I’ve been advocating for at least three to four straight weeks of consistency before we can get a proper read on the stockpile and refining situation." 

Distillate stockpiles, which include diesel and heating oil, fell 815,000 barrels in the week against expectations for a draw of 361,000 barrels, the EIA data showed.

Refinery crude runs fell 39,000 barrels. The weekly refinery utilization rate was down 0.8%, according to the EIA report.

Gasoline inventories rose 2.47 million barrels last week the EIA said, compared with expectations for a 1.76 million-barrel build.

Krishnan added: "As of last week, it appears that refiners dropped their utilization of operable capacity slightly to 81.7% from the previous week’s 82.5%. So, it looks like the 2 million-barrel draw out of Cushing and exports returning to above 3.3 million bpd from a previous 2.25 million is the bigger driver here, along with the drop in imports. All these make a truly interesting read on the push-and-pull that’s going on as the market continues to adjust forecasts on supply and demand amid the ongoing Covid-19 pandemic. Again, we have gasoline builds resuming higher than expected, with almost 700,000 barrels above forecasts. But distillates surprisingly drew down 500,000 barrels more than thought — which has been rare in this space.”

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Latest comments

hmmm great interest in the stock exchange there.
Heavily manipulayed trend. You can NOT always time a parallel move by stocks and oil, yet those parallel moves happen suspiciously often
Oil is priced bases in cuts & forecasted usesge AFTER OPENING ECONOMY back up which i estimate April or Mayis the latest and the eitkd eill be open. My wife, I and friends travel more now inspite of the exagersted CCP (Covid) cases. Id say 80-90% is a joke on us. I know too nany medical proffesionsls, friends who see peoe msrked positive and never tested. Even a doctor argued to mark a negative patient positive. CDC shows FLU down 50% because Tests r improperly marking as Covid. Faulty testing. Vaccine and flu season ending willl bring us near to normal amd oil consumption will signifucsntly rise. Just need production to stay down. Biden will also do everything he can to increase oil prices to make alternstive energy to start looming cheaper.
AT- COVID19 is no joke. Pandemics can lead to extinctions, as IS happening on our planet. (not funny).Tic-toc.
You swallow ad salesmen (news media's) storylime too much. Mortality numbers: heart disease: 7+M/yr pneumonia: up to 3M/yr covid: 2.1M so far. The smart folk are very cautious about covid. The smarter folk know how to understand what is fluff and what is a very severe case of a flu strain. Research flu deaths globaloy and hisyorically from cdc and WHO if it helps. News media will never balance the story this way but instead stick and pound on a specially threatening story lime harder and harder. Now ask a seasoned journalist how important ratings are to their careers and business and why they are important.
It's still hard for me to believe that EIA yesterday said that draw was 5-6M barrels and just a day after, they added 5M barrels to that... Have I missed something...???
PB- Summation of ALL data tells the tale: The USA is leading the planet in natural resource mismanagement (paryticularly the squandering of ancient, priceless, liquid and gas, subterranean natural resources (oil). Tic-toc.
after lybia, waiting for iran
When crude production is being cut, producers going bankrupt and half the world is in lockdown a drop in inventories is expected. Saudi Arabia was exceeding exports last year and you could see dozens of tankers acting as storage tanks sitting in the gulf. A lot of work is done to keep the crude price above $42 / barrel. Not to forget the dozens off storage tankers sitting off the Angola coast but if you don't work in the industry you wont see this.
thanks to this ridiculous high price of oil, XOM finally grow up to a giant company worth 190B. Without this insane oil price, it should be a similar small company like GME, lol. But we'll know it's bubble, XOM will drop back to 1.9B soon.
Good points but I think the effects of lockdowns is waning, people are getting tired of being cooped up. Going for a drive or traveling locally is all they can do.
Let's keep screwing with supply (no XL pipeline, "evil" fraking targeted by the woke), watch what happens.
Woke people would rather buy oil from the middle east to fund wars. They also don’t care about the increased environmental damage transporting oil by ship.
US political change and the covid_19pandemic can be viewed as the main reason for the downward trend. No need to worry,stocks would hold
Supply shock coming
US political change and the covid_19pandemic can be viewed as the main reason for the downward trend. No need to worry,stocks would hold
All bogus theory here as total oil inventory is still 15% higher than pre-pandemic levels despite refining utilization level dropping. Demand is still the driver and pricing is still wacko given the oversupply and reduced demand. Oil will be backdown near the $42 level soon.
Demand is the driver, so what do you think the impact on pricing will be now that new drilling leases have been canceled both offshore and land as well as the "great" idea of canceling the Keystone pipeline? Oil being back to or near $42 again is highly unlikely if the given trend continues.
Great and laughable joke .STILL we are in Pindimic and stock Fell 😅😅😅
Aurang Khan, it's spelled "pandemic" (your typo excused) and it's only laughable if you haven't an inkling about what's going on in the O&G space now. The refiners are trying to get a read on the demand that's likely to surface post-winter and studying the tea leaves on how vaccines and Biden's stimulus efforts will offset new lockdowns occurring from the second strain of the virus. Educate yourself, otherwise you look ridiculous trying to ridicule others.
Two weeks ago, this fool analyst bet "oil would drop sooner than we thought" with someone disagree with him. When will it happen?? Cannot wait longer to buy more oil.
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