The American Petroleum Institute (API) announced a surprise increase this week for crude oil by 7.757 million barrels, compared to analysts’ expectations of 1.367 million barrels.
US crude stocks have lost about 72 million barrels since the beginning of 2021 and about 14 million barrels since the beginning of 2020.
In the previous week, the American Petroleum Institute reported an increase in crude oil inventories by 1.080 million barrels after analysts had expected a draw of 1.558 million barrels.
Oil prices were trading sharply higher on Tuesday due to a number of bullish catalysts that include a no-frills OPEC warning to the European Union that it will be nearly impossible to offset sanctioned Russian crude, dwindling Russian crude production so far in April, and the shutdown of Shanghai. . Mitigating even as Covid cases remain at record levels.
West Texas Intermediate crude was trading 6.54% at $100.50 a barrel on the day at 3:48 PM ET – down $0.30 a barrel over the course of the week. Brent crude was trading up 6.10% on the day at $104.50 a barrel on the day – down $1 a barrel over the course of the week.
US crude oil production rose to 11.8 million barrels per day for the week ending April 1 – the second consecutive increase after months of stagnation. US crude oil production remains 1.3 million barrels a day lower than in pre-pandemic times.
This week, the American Petroleum Institute announced that gasoline inventories were drawn down at 5.053 million drums For the week ending April 8 – after the previous week’s draw of 543,000 barrels.
Distillate inventories saw a decrease of 4.961 million drums For the week that followed last week’s increase, 593,000 barrels.
Cushing saw a 375,000 barrel increase this week. Cushing’s stocks rose to 25.887 million barrels as of April 1, according to EIA data — down from 59.2 million barrels at the beginning of 2021, and from 37.3 million barrels at the end of 2021.
At 4:36 PM ET, WTI was trading at $100.70 (+6.81%), with Brent trading at $104.80 (+6.37%).
By Julian Geiger for Oilprice.com
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