Oil Prices Head Lower Following Inventory Builds
By Julianne Geiger,OILPRICE – Jan 14, 2020, 3:52 PM CST
The American Petroleum Institute (API) has estimated surprise crude oil inventory build of 1.1 million barrels for the week ending January 10, compared to analyst expectations of a 474,000-barrel draw in inventory.
Last week saw a large draw in crude oil inventories of 5.95 million barrels, according to API data. The EIA’s estimates, however, were of a build of 1.2 million barrels for that week.
Oil prices were up earlier in the day prior to the afternoon data release, but were down significantly week on week after the initial shock wore off from the US airstrikes in Iraq that killed an Iranian military general Qassem Soleimani and corresponding retaliatory actions by Iran.
At 3:34 pm EST, the WTI benchmark was trading up $0.25 (+0.43%) at $58.33—roughly $4 per barrel below last week’s inflated levels. The price of a Brent barrel was also trading up on Tuesday, by $0.40 (+0.62%), at $64.60—also nearly $4 under last week’s prices.
The API this week also reported another build of 3.2 million barrels of gasoline