The American Petroleum Institute (API) has calculated an estimated crude oil inventory draw of 7.227 million barrels for the week ending September 5, which is larger than the initial estimate made.
API compiled data revealed that the inventory build this week takes away from last week’s build in crude oil inventories of 401,000 barrels. The EIA estimated that week that there was an inventory draw instead, of 4.8 million barrels.
After today’s inventory move, the net draw for the year is 25.90 million barrels for the 37-week reporting period so far, using API data.
Oil prices were trading up for the sixth day in a row on Tuesday prior to the data release after signs from OPEC point to an extension of its production cut agreement.OPEC is expected to meet later this week to discuss how the cartel should proceed to best meet its aim of rebalancing the oil market.
At 10:05am EDT, WTI was trading up $0.19 (+0.33%) at $58.04—nearly $2 up from last week. Brent was trading up $0.39 (+0.62%) at $62.98, or over $2 per barrel above last week’s levels.
The API this week reported a large draw of 4.460 million barrels of gasoline for the week ending September 5. Analysts predicted a draw in gasoline inventories of 900,000 barrels for the week.
The US crude oil production estimated the Energy Information Administration that production for the week would end August 30 returned to the 12.4 million bpd mk, falling lower than the past week’s results.
By 4:39pm, WTI was trading at $57.63, while Brent was trading at $62.54