Crude Oil Prices Rose After EIA Reported Inventory Drop
- Crude oil prices rose as the EIA reported a third week of inventory reduction
- Inventories fell by 6.2m barrels last week vs. forecasts of a 3.3m barrel gain
- Official EIA outcome was foreshadowed by large draw in weekly API estimate
Crude oil prices spiked momentarily following the release of the Energy Information Agency’s weekly inventory report. US commercial crude inventories saw a decrease of 6.2 million barrels, contradicting expectations for a 3.25m barrel increase, marking this the 3rd week of inventory draws. However, the EIA stated that crude stocks are still at high levels for this time of year. Gasoline inventories also decreased, falling by 3.2 million barrels last week after increasing by 567 thousand barrels in the week prior. An estimate of weekly inventory flows from API hinted at a large drawdown yesterday.
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