API reports build while market awaits EIA report

Both Brent and WTI is struggling amid trade tensions weakening the emerging markets and increasing supplies from OPEC, Russia, and the United States. WTI is currently trading at $67.2 per barrel and Brent at $6.9 per barrel premium to WTI.

Key factors at play in the crude oil market –

• OPEC production up 32.323 million barrels per day in July.
• Saudi production eased in July to 10.36 million barrels per day.
• Trump is pressing Saudi Arabia to increase oil production by almost 2 million barrels per day. Saudi Arabia is likely to comply once the supplies from Iran starts drying up due to sanctions by the U.S.
• The U.S. reportedly asked allies to stop importing Iranian oil from November this year.
• Libyan production is set to recover to 1 million barrels per day in August.
• Venezuela in crisis as oil production declined to 1.24 million barrels per day in July. The country is strolling to cope up with the introduction of a new currency linked to the country’s crypto-currency Petro.
• EIA projects U.S. crude production to increase to 12 million barrels per day by end of 2019 and U.S. would become the single largest producer by the next five years.
• Current U.S production at 10.9 million barrels per day.
• API reported a draw of 5.17 million barrels of crude oil. Gasoline saw a draw of 0.93 million barrels.

Today’s inventory report from US Energy Information Administration (EIA) will be released at 14:30 GMT.