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A sharp increase in gasoline inventories that offset a slight drop in crude oil inventories somewhat dampened bullish sentiment in markets on Tuesday afternoon
The American Petroleum Institute (API) on Tuesday reported a crude oil inventory drawdown of 4.264 million barrels for the week ending August 14 – a close mirror to last week’s draw number.
Analysts had predicted a modest inventory drawdown of 2.670 million barrels.
In the previous week, API reported a crude oil inventory drawdown of 4.401 million barrels, after analysts predicted a drawdown of about half.
Oil prices were trading lower on Tuesday afternoon before the API data was released, and minutes before the release, WTI had fallen $ 0.33 (-0.77%) to 42, $ 56. The Brent benchmark had fallen $ 0.30 (-0.66%) to $ 45.07, even as OPEC this week showed its overall compliance rate in July was about as good good as it could be.
Still, traders are wary of the approach of any of the inventory reports, and this week is also further complicated by the scheduled OPEC meeting, although most analysts agree the meeting will likely turn out to be rather without incident.
Oil production in the United States now appears to be stabilizing after falling from a high of 13.1 million b / d on March 13 to 10.7 million b / d on August 7, according to the Energy Information Administration – the loss added to the production cuts of OPEC.
API reported a build of 4.991 million barrels of gasoline for the week ending August 14, compared to last week’s 1.310 million barrels of draft. This week’s build is not what analysts had expected, which was a draw of 1.057 million barrels for the week.
Distillate inventories were down 964,000 barrels for the week, from last week’s 2.94 million barrels draft, while Cushing’s inventories fell a modest 590,000 barrels.
At 4:33 p.m. EDT, WTI was trading at $ 42.58 while Brent was trading at $ 45.09.
By Julianne Geiger for OilUSD
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