investment.com – Oil inventories fell roughly in line with expectations last week, according to the Energy Information Administration.
fell 1 million barrels, against an expectation of 1.02 million barrels. It comes a week after crude inventories fell 3.8 million barrels.
Inventory has declined in all but one of the last six weeks as the economy tries to come to life after Covid-related shutdowns earlier this year.
, the US benchmark, fell 3% in morning trading after the release.
Crude oil stored in, Oklahoma, increased 975,000 barrels from a planned construction of 1.1 million barrels.
“The 1.9 million figure is, of course, a surprising 180-degree increase from forecast,” said Baani Krishnan, analyst at Investing.com. “But if you think about it, that number isn’t as remarkable as it seems, given the typical downturn in driving at this time of year. “
Krishnan added, “The 3.8 million barrel draw is notable for having more than doubled from expectations and this could be due to the heavy delivery and trucking activity as many people stayed in their homes to order everything from clothes to groceries. To me, what really stands out from this report is the EIA’s estimate of production of 9.9 million barrels per day for the last week, which is a drop of 600,000 b / d from the week before, and is not leveling off at all with the US uptick we’ve seen since mid-September. I think some of the impact of Hurricane Delta has been overstated on the production side in this report and it remains to be seen if the EIA will work in next week’s report. ”
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