Crude Prices Rise as US Inventories Fall for Fifth Week
- Crude oil prices rose momentarily as the EIA reported a fifth week of inventory reductions
- Crude oil inventories fell by 2.3m barrels and gasoline inventories rose 222k bbl last week
- Implied demand averaged 19.9 million barrels, up 3 percent from this time last year
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Crude oil prices curiously fell about 0.3 percent today following the release of US inventory data as the Energy Information Agency reported its fifth week of stockpile reductions. A reduction in stockpiles might have been expected to boost prices under most circumstances. Prices came back up within 15 minutes of the release and eventually erased their losses.
Crude inventories fell 2.3 million barrels last week, while analysts expected an addition of 1.5 million. Gasoline inventories rose less than expected at 222 thousand barrels, compared to the 555 thousand expected. Distillate inventories fell more than expected by 2.3 million barrels, as compared to 1.5 million expected.
The weekly EIA report also noted that despite 5 weeks of crude inventory draws, stockpiles remain at “historically high levels for this time of year”, with total inventories coming in at 499.7 million barrels. Total products supplied, or “implied demand”, averaged 19.9 million barrels per day, which is 3 percent greater than this time last year.
Later this week, Baker Hughes will release their weekly rig count data. Next week, the International Energy Agency will release its monthly Oil Market Report.
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