Crude Stockpiles Fell 6.866 Million Barrels Last Week: EIA
Investing.com
Published Jul 08, 2021 10:56AM ET
Updated Jul 08, 2021 11:54AM ET
(Updates with comment on oil prices)
Investing.com -- U.S. oil stockpiles fell by more than expected in the latest week, the Energy Information Administration said on Thursday.
Crude oil inventories dropped by 6.866 million barrels last week, compared with analysts' expectations for a draw of 4.033 million barrels.
Distillate stockpiles, which include diesel and heating oil, rose 1.616 million barrels in the week against expectations for a build of 171,000 barrels, the EIA data showed.
Gasoline inventories fell 6.076 million barrels last week the EIA said, compared with expectations for a draw of 2.176 million barrels.
Oil prices rose just modestly on news of the crude stockpile drop.
By 11:45 AM ET (15:45 GMT), New York-traded West Texas Intermediate crude, the benchmark for U.S. oil, was up 47 cents, or 0.7%, at $72.67.
WTI had fallen more than 5% over the past two days combined, on worries about the security of future production cuts by the OPEC+ cartel after a spat between Saudi Arabia and the United Arab Emirates on export quotas.
“We have a crude draw of almost 7 million barrels versus the forecast of 4 million barrels and yet, WTI is struggling to rally today,” said Investing.com analyst Barani Krishnan. “We have to ask ourselves why and the answer is obvious: There is greater fear ow about OPEC+ and what could happen to the coalition’s grander production cuts versus the euphoria over plummeting U.S. stockpiles.”
“Until the UAE comes out and says, ‘We’ll respect the export quotas until we get another agreement’, oil prices could remain under pressure.”
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