U.S. crude oil inventories fell by 3.4 million barrels in the week to Aug. 23, according to the American Petroleum Institute. Analysts had been expecting a fall of 3 million barrels.
API reported that crude oil inventories increased by 347,000 barrels last week.
So far this year, crude oil inventories are down 2.642 million barrels, more than 2 million barrels lower than at the start of the year, according to API data.
On Monday, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) increased by another 700,000 barrels as of Aug. 23, bringing current inventories to 377.9 million barrels.
Oil prices fell on Tuesday ahead of the release of the API data. As of 4:24pm ET, Brent crude was trading at $79.67, down $1.76 (-2.16%) from the previous day. Although it was down from the previous day, it was still up about $1.40 per barrel from the same time last week. WTI, the US benchmark, was also trading at $75.71, down $1.71 (-2.21%) from the previous day, but up about $0.70 per barrel from the same time last week.
Gasoline inventories fell by 1.86 million barrels this week, following a decline of 1.043 million barrels last week. Analysts had been expecting a decline of 1.6 million barrels. As of last week, gasoline inventories were 3% below the five-year average for this time of the year. EIA Data.
Distillate inventories also fell by 1.4 million barrels this week, adding to a 2.247 million barrel drop last week. Analysts had been expecting a decline of 1.1 million barrels. Distillates were about 10% below the five-year average in the week ended Aug. 16, according to the latest EIA data.
Cushing inventories completed the decline by 486,000 barrels, down from a drop of 648,000 barrels the previous week, according to API data.
Article by Julianne Geiger of Oilprice.com
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