Huge drawdown of USA oil inventory+Drop in production
Oil prices increased by more than 1.5 percent on Thursday, with WTI and Brent trading at $46.25 and $48.64, respectively, at the time this article was written. This increase was attributed to a huge drawdown in U.S crude oil inventories. According to American Petroleum Institute (API), U.S. crude oil inventories fell by a massive 12 million barrels last week. As per the API data, this was the biggest drop in crude oil inventories since January 1999.
In a poll that was conducted earlier by Reuters, it was predicted that there was a drawdown of 100,000 barrels in U.S. crude oil inventories last week. However, the current API data shows that last week's crude oil inventory drawdown is way higher than what was expected. In fact, many traders and analysts were expecting an inventory buildup of around 900,000 barrels.
And USA production is way down
2015-Jul 07/03 9,604 07/10 9,562 07/17 9,558 07/24 9,413 07/31 9,465
2015-Aug 08/07 9,395 08/14 9,348 08/21 9,337 08/28 9,218
2015-Sep 09/04 9,135 09/11 9,117 09/18 9,136 09/25 9,096
2015-Oct 10/02 9,172 10/09 9,096 10/16 9,096 10/23 9,112 10/30 9,160
2015-Nov 11/06 9,185 11/13 9,182 11/20 9,165 11/27 9,202
2015-Dec 12/04 9,164 12/11 9,176 12/18 9,179 12/25 9,202
2016-Jan 01/01 9,219 01/08 9,227 01/15 9,235 01/22 9,221 01/29 9,214
2016-Feb 02/05 9,186 02/12 9,135 02/19 9,102 02/26 9,077
2016-Mar 03/04 9,078 03/11 9,068 03/18 9,038 03/25 9,022
2016-Apr 04/01 9,008 04/08 8,977 04/15 8,953 04/22 8,938 04/29 8,825
2016-May 05/06 8,802 05/13 8,791 05/20 8,767 05/27 8,735
2016-Jun 06/03 8,745 06/10 8,716 06/17 8,677 06/24 8,622
2016-Jul 07/01 8,428 07/08 8,485 07/15 8,494 07/22 8,515 07/29 8,460
2016-Aug 08/05 8,445 08/12 8,597 08/19 8,548 08/26 8,488
That is a 1.1 million barrel a day decrease in production in USA
Pretty obvious that oil will go up.
