According to the New York news, the oil futures brightens, maintaining some gains from earlier in the day, a report showing heavy drawdowns in the U.S. crude records was offset by data pointing to monotonous gasoline demand.
The U.S. Energy Information Administration (EIA) said U.S. crude inventories fell 7.6 million barrels last week, and it is the huge weekly drop in 10 months. That was much more than the 2.9 million barrel crude draw prediction in a Reuter’s poll but was the little bit less than the 8.1 million-barrel decline. This is reported by the American Petroleum Institute (API) on Tuesday.
495.4 million barrels, U.S crude oil inventories were in the upper half of the average range for this time of year. EIA said U.S. gasoline stocks USOILG=ECI 1.6 million barrels, compared with analysts, expectations for a 1.1 million-barrel gain, but was also in the upper half of the average range.
The Senior Analyst at Interfax Energy’s Global Gas Analytics Abhishek Kumar said in London: “U.S. gasoline demand remains lackluster and gasoline stocks are still above the five-yea average, which will cap gains in crude and gasoline prices.”
Brent crude futures LCOc1 rose 22 cents, or 0.5 percent, to settle at $47.74 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 gained 45 cents, or 1 percent, to settle at $45.49. the bigger gain in U.S. crude, pressured the premium of front-month Brent futures over WTI to $2.08 per barrel, the lowest so far this month. Before the EIA out its storage report, Brent was up 1.9 percent and WTI was up 2.4 percent.
The traders noted the recommendations from the Organization of the Petroleum Exporting Countries (OPEC) that the oil market will see an excess next year also weighed on Wednesday’s price gains.
Regional Investment Manager with U.S. Bank Wealth Management in Park City, Utah Mr. Mark Watkins said: “We are still facing a situation where there is an abundance of oil across the globe and demand is increasing at a pace that only makes a small dent in inventories. The rebalancing of the supply and demand equilibrium for oil is moving at a snail’s pace.”