Oil Spikes After API Reports Largest Crude Inventory Draw of the Year
The American Petroleum Institute (API) reported a huge crude oil inventory draw of 10.961 million barrels for the week ending July 18, compared to analyst expectations of a much smaller—but still significant–4.011-million barrel draw. The inventory draw this week compares to last week’s small draw of 1.401 million barrels, according to the API. A day later, the EIA had estimated an even bigger inventory drawdown of 3.1 million barrels. After today’s extra-large draw—the largest draw this year–the net build is now just 1.20 million barrels for the 30-week reporting period so far this year, using API data.
Oil is probably the reason we won’t go to war with Iran
Many cynics have long contended that the real reason the U.S. entered a slew of recent wars was only to protect American oil interests. But now it’s beginning to look like oil may be a major reason why the U.S. isn’t getting into a war with Iran. Believing that flies in the face of a common sentiment that the need for oil costs lives, especially when discussing the first and second Persian Gulf Wars. That sentiment was helped along by the fact that President George H.W. Bush and his son President George W. Bush had both been oilmen before embarking on their political careers.
U.S. Punishes Chinese Company Over Iranian Oil
For the first time, the Trump administration is imposing economic penalties on a Chinese company for importing Iranian oil, a decision certain to add to tensions between Washington and Beijing. The Trump administration is imposing economic sanctions on a Chinese state-owned oil trading company and its top executive for buying Iranian oil in violation of an American ban, Secretary of State Mike Pompeo said Monday. It is the first time the Trump administration has penalized a Chinese company and executive for defying recent United States sanctions on Iranian oil exports.
Permian Basin Oil Production Growth Is Falling Fast
The Permian Basin is responsible for the greatest oil production gains in the U.S. in recent years. Over the past eight years, there has been phenomenal production growth in the Permian. Between August 2011 and today, Permian Basin oil production quadrupled, with oil production there topping 4 million barrels per day (BPD) earlier this year. But recently a number of reports have highlighted a slowdown in U.S. shale oil growth.