Oil rises despite low inventory drawdowns



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The American Petroleum Institute (API) on Tuesday reported a reduction in crude oil inventories of 816,000 barrels for the week ending August 6, bringing the total crude withdrawals for 2021 to nearly 56 million barrels, using API data.

Analysts expected a loss of 1.050 million barrels for the week.

The week before, API reported a reduction in oil inventories of 879,000 barrels, a figure well below the nearly 3 million barrels predicted by analysts.

The price of a barrel of WTI had risen earlier on Tuesday after a brutal Monday as fears of the effect of the Delta variant on oil demand in Asia and the United States faded.

WTI gained more than 3% on Tuesday afternoon before the data was released.

As of 4:03 p.m. EST, WTI was trading at $ 68.48, a gain of $ 2 a barrel that day, but still a loss of $ 2 from this hour last week. Brent crude was trading up 2.51% for the day at $ 70.77, also down nearly $ 2 a barrel week over week.

As US crude oil inventories continue to decline, US oil production has remained on a fairly balanced keel which has gone from 11 million bpd at the start of the year to 11.2 million bpd now, where it stands. for the second consecutive week.

API reported a drop in gasoline inventories of 1.114 million barrels for the week ending August 6, compared to the previous week’s 5.751 million barrel draw.

Distillate inventories saw an increase in inventories this week from 673,000 barrels for the week, almost offsetting the 717,000 barrel drop from last week.

Cushing’s stocks fell this week from 413,000 barrels, after the increase of 659,000 barrels last week.

By Julianne Geiger for OilUSD

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