Oil Stockpiles Fell 4.4 Million Barrels: EIA By Investing.com

© Reuters.

Investing.com — U.S. oil stockpiles declined last week, confounding expectations, according to the Energy Information Administration.

fell by 4.4 million barrels last week after a 2 million-barrel increase the week before. Analysts tracked by Investing.com had expected a build of 1.27 million barrels for the week.

Hurricane Sally bore down on the U.S. Gulf Coast on Wednesday but was not expected to cause major damage to drilling and refinery operations, though a quarter of production in the region is shut down.

Oil stored at , Oklahoma, fell by 74,000 barrels after a build of 1.8 million barrels the prior week.

Oil prices jumped Wednesday morning after an industry estimate on Tuesday showed a surprising 9.5 million-barrel draw from inventory. West Texas Intermediate, the benchmark, rose 4%, to $39.83, and , the international standard, rose 3.5%, to $41.98.

“While the crude draw itself is positive, given that it’s four times more than the build estimate, the ‘hidden’ number to me is last week’s production, which was up nearly a million barrels from output returning after Hurricane Laura.,” said Investing.com analyst Barani Krishnan, referring to last month’s storm. “We’re now at nearly 11 million bpd, just about 2 million shy of the March record high.”

Krishnan added the current storm could cause additional outages and numbers could be distorted for another week or two. “I’d caution oil bulls as taking any of these numbers and running with them. For sure, with the end of the peak U.S. driving season and with work commute and flights still at a fraction of pre-pandemic levels, there is seriously no great story for fuel demand. The IEA has, accordingly cut its forecasts; OPEC+ has said it won’t do unilateral cuts to support prices and Libya could bring up to a million barrels more to the market if the peace process there holds.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

by : Investing.com

Source link

Capital Media

Read Previous

BGFIBank Europe notée AA+ et A1 par Bloomfield Investment Corporation

Read Next

Lessons from how the polio vaccine went from the lab to the public that Americans can learn from today