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The American Petroleum Institute (API) on Tuesday reported a sharp drop in crude oil inventories of 5.147 million barrels for the week ending November 6.
Analysts had predicted an inventory draw of just 913,000 barrels.
In the previous week, API reported a shocking drop in oil inventories of 8.01 million barrels, after analysts predicted a construction of 890,000 barrels for the week.
Oil prices rose Tuesday afternoon ahead of the release of API data, backed by mainstream media calling for Joe Biden’s US presidential election and OPEC + hints it could extend current streak production cuts beyond January. Bearish factors this week include the continued increase in oil production in Libya and further lockdowns in Europe.
In the run-up to Tuesday’s data release at 3:57 p.m. EDT, WTI had risen $ 1.07 (+ 2.66%) to $ 41.36, up nearly $ 4 a barrel on the week. . The benchmark Brent index had risen that day from $ 1.21 at the time (+ 2.85%) to $ 43.61, or more than $ 3 a barrel for the week.
Oil production fell last week, continuing its rocking action as it rebounds between 9.7 million b / d and 11.1 million b / d. US oil production currently stands at 10.5 million bpd, according to the Energy Information Administration.
The API reported a gasoline inventory drawdown of 3.297 million barrels of gasoline for the week ending Nov. 6, compared to the build of 2.45 million barrels the previous week. Analysts were expecting 263,000 barrels for the week.
Distillate inventories were down 5.619 million barrels for the week, compared to last week’s 577,000 barrels draft, while Cushing’s inventories fell 1.17 million barrels.
At 4:42 p.m. EDT, the benchmark WTI was trading at $ 41.61 while Brent crude was trading at $ 43.85.
By Julianne Geiger for OilUSD
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