One day after the US Petroleum Institute estimated that a commodity oil stock of 5 million barrels would retreat and not be able to reverse the oil price fall, the energy management administration also failed to report only a moderate drawing.
authority reported a 1.1 million barrel a week draw on June 28, after a 12.8 million barrel draw for the previous week. An inventory change of such size strengthened prices for the rest of the week.
At 468.5 million barrels, US crude inventory was 5 percent above the upper five-year average, also said EIA, and added refineries processed 17.3 million bpd last week, unchanged from the previous week's daily processing rate.
Petrol stocks shed 1
In distillate fuel, MER reported a stockpile of 1.4 million barrels in the last week of June, with output standing at 5.3 million bpd. A week earlier, distillate fuel revenues fell by 2.4 million barrels and production was the same at 5.3 million bpd.
In the week, MVA showed that US crude oil production had increased to 12.16 million bpd in May, a record high cementing of the country's place as the world's best crude oil producers. In line with the Trump administration's energy dominance strategy and in favor of drivers, the news is not particularly good for those companies that made this production level possible.
Most shale oil companies burn money with just a handful of those who generate a positive cash flow. This creates a shadow over the industry's long-term sustainability, which basically needs to keep pumping to pay its debt right now, according to some industry insiders.
One thing is certain, but rising US production will continue to hold a cap on international oil prices as the latest evidence of traders' indifference to OPEC +'s announcement of a nine-month extension of production cuts.
By Irina Slav or OIlprice.com
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