Analysts had predicted a more modest draw of 2.346 million barrels for the week.
In the previous week, API reported a major increase in oil inventories of 4.319 million barrels after analysts predicted a much smaller build of 659,000 barrels. Rose Rock Midstream tanks to April 30.
Oil prices rose the day before the data was released as the EU and several US states plan to ease their lockdown restrictions in a move that would bolster demand for oil, even as the number of new coronavirus cases in India remains high.
As of 3:44 p.m. EDT, WTI was trading at $ 65.68, up 1.85% on the day and about $ 3 more per barrel than last week. Brent traded at $ 68.84 a barrel or 1.89% higher on the day.
As crude oil inventories fell significantly this week, U.S. oil production also fell, albeit modestly, to 10.9 million b / d on average for the week ending April 23, according to the latest data from the ‘Energy Information Administration.
If the bulls weren’t enforcing the reduction in crude inventory enough already, they will certainly apply the reduction in gasoline. API reported a gasoline inventory drawdown of 5.308 million barrels for the week ending April 30, following the previous week’s draw of 1.288 million barrels. Analysts were expecting 652,000 barrels for the week.
Distillate inventories, too, have seen inventories decline this week by 3.453 million barrels for the week, following a drop of 2.417 barrels last week.
Cushing’s stocks were the only stock made this week, increasing by 548,000 barrels.
After the data was released at 4:33 p.m. EDT, the benchmark WTI was trading at $ 65.68 while Brent was trading at $ 68.84 a barrel.
By Julianne Geiger for OilUSD
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