# CORRECTED-UPDATE 1-Oil drops on rising US crude inventories, defies expected supply cut extension

> Oil prices fell on 18 May 2017 after US crude inventories rose, despite Saudi Arabia and Russia having agreed the previous Monday to extend the 1.8 million bpd cut for nine months. The market reacted to the inventory data rather than to the cut extension.

- Date: 2017-05-18 · published 2017-05-18T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/70932-corrected-update-1-oil-drops-on-rising-us-crude-inventories-defies-expected
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Rising US crude stocks signal that supply is outpacing demand, which weighs on crude prices and undermines the OPEC effort to reduce the glut. Lower oil prices also reduce the cost of diesel and freight.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼
- DIESEL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-02-24 | [U.S. crude oil inventories rose as utilization drops](https://feedsoft.ai/events/37510-u-s-crude-oil-inventories-rose-as-utilization-drops.md) | +3.7% | -7.3% |
| WTI | 2020-04-15 | [Oil drops on record inventory build, supply concerns](https://feedsoft.ai/events/4484-oil-drops-on-record-inventory-build-supply-concerns.md) | -32.0% | +25.9% |
| WTI | 2018-11-22 | [Oil falls on rising U.S. inventories, OPEC talk of cut limits loss](https://feedsoft.ai/events/10582-oil-falls-on-rising-u-s-inventories-opec-talk-of-cut-limits-loss.md) | -5.6% | -16.1% |
| WTI | 2019-03-06 | [EIA: US crude inventories climb 7.1 million bbl](https://feedsoft.ai/events/60290-eia-us-crude-inventories-climb-7-1-million-bbl.md) | +0.6% | +10.6% |
| WTI | 2019-10-30 | [Oil prices extend fall after surprise inventory build(Update) \| The Star](https://feedsoft.ai/events/56743-oil-prices-extend-fall-after-surprise-inventory-build-update-the-star.md) | +3.1% | +5.2% |
| BRENT | 2020-04-15 | [Oil drops on record inventory build, supply concerns](https://feedsoft.ai/events/4484-oil-drops-on-record-inventory-build-supply-concerns.md) | -47.7% | +11.5% |
| BRENT | 2018-11-22 | [Oil falls on rising U.S. inventories, OPEC talk of cut limits loss](https://feedsoft.ai/events/10582-oil-falls-on-rising-u-s-inventories-opec-talk-of-cut-limits-loss.md) | -6.7% | -9.8% |
| BRENT | 2023-07-26 | [Oil falls 1% after Fed rate hike, smaller-than-expected US crude stockdraw](https://feedsoft.ai/events/34960-oil-falls-1-after-fed-rate-hike-smaller-than-expected-us-crude-stockdraw.md) | +1.9% | +1.0% |

## Sources

- reuters.com: https://www.reuters.com/article/business/energy/corrected-update-1-oil-drops-on-rising-us-crude-inventories-defies-expected-sup-idUSL4N1IJ16M/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.