investing.com — Oil stockpiles declined roughly in line with expectations last week, according to the Energy Information Administration.
fell 1 million barrels, against expectations for a draw of 1.02 million barrels. That comes a week after crude stocks fell 3.8 million barrels.
Inventory has fallen in all but one of the last six weeks as the economy tries to come back to life after Covid-related shut downs earlier this year.
, the U.S. benchmark, fell 3% in morning trading after the release.
Crude oil stored at , Oklahoma, increased 975,000 barrels compared to an expected build of 1.1 million barrels.
“The of 1.9 millions is, of course, a surprising 180-degree build over forecast,” said Investing.com analyst Barani Krishnan. “But if you think about it, that number isn’t as remarkable as what it seems given the typical slowdown in driving at this time of year.”
Krishnan added: “The draw at 3.8 million barrels stands out for being more than double to expectations and that could be due to the strong delivery-and-trucking activity as many people remained cloistered in their homes ordering everything from clothing to groceries.”
“To me, what really stands out in this report is the EIA’s production estimate of 9.9 million barrels per day for last week, which is down 600,000 bpd from the previous week, and doesn’t gel at all with the rise in U.S. that we’ve seen since mid-September. I think some of the impact of Hurricane Delta has been overestimated on the production side in this report and it remains to be seen if the EIA will work that through in the coming week’s report.”
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by : Investing.com