US weekly crude oil inventories fall 3.060 million barrels vs 0.820 million draw expected
Crude oil: −3.060 million barrels vs −0.820 million expected. Prior −8.557 million.
Gasoline: −2.952 million barrels vs −0.443 million expected. Prior +3.518 million.
Distillates: +1.675 million barrels vs −1.162 million expected. Prior −2.527 million.
US crude oil inventories fell more than expected in the Energy Information Administration’s weekly report. Gasoline stocks also recorded a larger-than-expected draw, but an unexpected build in distillates provided an offset.
Last night’s private inventory data
The American Petroleum Institute (API) figures, as reported by Julianne Geiger in the supplied screenshot, showed:
Crude oil: −4.93 million barrels vs −1.3 million expected.
Gasoline: −2.0 million barrels.
Distillates: −2.6 million barrels.
Cushing inventories: +900,000 barrels.
The official crude draw was smaller than the private survey indicated, while the gasoline draw was larger. The biggest difference was in distillates: the EIA reported a 1.675 million-barrel build, compared with the API’s 2.6 million-barrel draw.
Quick analysis: The crude and gasoline draws lean supportive for oil prices, but the distillate build takes some shine off the report. Compared with last night’s private figures, today’s official numbers give oil buyers a less clear-cut bullish story. Inventory changes also reflect refinery activity and trade flows, so draws alone do not establish stronger demand. One weekly report is unlikely to change the Fed’s outlook, although sustained energy-price gains could add to inflation concerns.
What this report measures: The EIA’s weekly petroleum report tracks US oil inventories, refinery activity and supply flows. A draw means stocks declined; a build means they increased. Traders compare the official figures with expectations and the earlier API private survey for clues about supply and demand.
The price of crude oil is currently trading at $97.93. That’s near unchanged on the day. The low price today has reached $96.92. That was just below a swing area low at $97. The high prices that $100.40. The 100 hour moving average currently trades at $97.69. The price is currently back above that moving average below a swing area high resistance target at $98.48 ( see post and video from earlier today here ).
This article was written by Greg Michalowski at investinglive.com.
