Oil Jumps on Significant Crude, Product Inventory Slide
Crude oil inventories in the United States fell by 5.8 million barrels during the week ending June 20, according to new data from the U.S. Energy Information Administration (EIA) released on Wednesday. The drop brings commercial stockpiles to 415.1 million barrels, roughly 11% below the five-year average for this time of year.
Crude prices were trading up ahead of the report. The American Petroleum Institute (API) on Tuesday had estimated a 4.277-million-barrel drop for the week ending June 20 after analysts had estimated a much smaller 600,000-barrel draw.
At 9:44 a.m. in New York, Brent was trading at $67.57 per barrel, up 0.64% on the day, but down roughly $8 on the week. Meanwhile WTI was at $64.83 per barrel, gaining 0.71%.
For total motor gasoline, the EIA reported a draw of 2.1 million barrels, with daily production staying at 10.1 million barrels. For middle distillates, inventories dipped by 4.1 million barrels, with production decreasing to 4.8 million barrels daily. Distillate inventories remain 20% below the five-year average, sustaining supply tightness.
Total products supplied over the last four weeks averaged 20.0 million barrels per day, down 1.6% compared to the same period last year. Gasoline demand averaged 9.1 million barrels per day, while distillate product supplied was 3.5 million barrels—down 3.2 percent year over year.
By Julianne Geiger for Oilprice.com
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