The American Petroleum Institute (API) reported a crude oil investment surprise of 6.9 million barrels a week ending December 21, compared to analysts' expectation that we would see crude oil holdings of 2,869 million barrels. The surprise building will probably push oil prices further down and continue the seasonal prices on Christmas week.
Last week, API reported a surprisingly rough build of more than 3 million barrels. One day later, the EIA showed a small move of 500,000 barrels.
The lead up to today's data production from the API, which is on a two-day delay due to the Christmas holiday, experienced the crude oil price a huge dip with WTI and Brent deleted huge gains from Wednesday.
At 1[ads1]6:13 EST on Wednesday, WTI was trading on the day $ 4.42 (+ 10.39%) per barrel of $ 46.95. And while what's significant of a gain is rare, it's still down from last week's nearly $ 48 a barrel. Brent crude traded up $ 4.76 (+ 9.38%) at $ 55.53, still down from this time last week when there was a hair below $ 58 a barrel.
But Thursday's prices came and blew away yesterday's winnings, with WTI trading down 3.27% at 11:23 EST at $ 44.71, and Brent's trading down 2.68% at $ 53.29.
Inventories in Cushing, Oklahoma plant this week climbed by 1.8 million barrels.
The API also reported a build-in of gasoline stocks a week ending December 21 in the amount of 3.7 million barrels. Analysts had predicted a negligible build-up of 28,000 barrels a week.
US crude oil production as estimated by the Energy Information Administration showed that production for the week ending December 14 stood at 11.6 million bpd for the second week in a row. 19659002] This week the distillate revenues fell by 598,000 barrels, compared to an expected drawing of 529,000 barrels.
US Energy Information Administration report on crude oil inventories to be released on Friday at 11:00 am. EST due to Christmas holidays.
At 16:38 EST, WTI traded at $ 45.63, and Brent was trading at $ 53.81.
By Julianne Geiger for Oilprice.com
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