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Surprisingly, Crude Oil Build Despite Steady Oil Prices

Crude Oil Prices fell a smidgeon after the Energy Information Administration announced a 600,000 barrel inventory build in the week ending April 16. This compares to a 5.9 million barrel drop in inventories the previous week, and analyst estimates for a 2.86 million barrel draw. The American Petroleum Institute had announced a small inventory build of less than half a million barrels the day before.

The EIA predicted a 100,000-barrel rise in gasoline inventories for the week ending April 16, compared to a 300,000-barrel build the week before. Production of gasoline reached 9.4 million bpd, down from 9.6 million bpd the week before. The authority announced a 1.1 million barrel inventory decrease in middle distillates, compared to a 2.1 million barrel draw the previous week. Last week, middle distillate output averaged 4.6 million bpd, down marginally from the previous week.

At the time of writing, Brent Crude Oil was trading at $65.85 per barrel, while West Texas Intermediate was trading at $61.86 per barrel, both down by more than a percent, as demand concerns began to weigh on fresh optimism sparked by two recent studies, one from OPEC and the other from the International Energy Agency, both of which revised upwards their Oil demand estimates for the year.

Owing to a lack of maintenance funds, Libya’s National Oil Corporation imposed force majeure on exports from the port of Hariga, and production was shut down at several fields, taking the country’s total to less than 1 million barrels per day. Fears of a rapid rise in new Covid-19 infections in India, one of the largest generators of global Oil demand after the United States and China, halted the rally.

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