The American Petroleum Institute (API) on Tuesday announced a drop in crude oil inventories of 5.36 million barrels for the week ending May 28.
Analysts had predicted a drawdown of 2.114 million barrels for the week.
The week before, API reported a drop in oil inventories of 439,000 barrels after analysts predicted a decline of 1.050 million barrels. Since the start of 2020, crude oil inventories have increased by more than 46 million barrels, according to API data.
Oil prices traded on Wednesday afternoon, on bullish signals from OPEC that saw the group stick to its production plans for the coming month. The bullish news from OPEC, combined with the lack of new developments regarding the Iran / US nuclear deal, pushed prices up more than 1% by noon. As of 12:32 p.m. EST, WTI was trading up $ 0.89 (+ 1.31%) at $ 68.61 before the data was released, up $ 2.50 a barrel at that time . Brent crude was trading up $ 0.87 per barrel (+ 1.24%) to $ 71.12 per barrel.
While crude oil inventories fell further this week, U.S. oil production continued at an average of 11 million bpd for the week ending May 21, according to the latest data from the Energy Information Administration.
API reported an increase in gasoline inventories of 2.51 million barrels for the week ending May 28, compared to the 1.986 million barrels drawn the previous week. Analysts expected a 1.385 million barrels draw of the week.
Distillate inventories saw an increase in inventories this week of 1.585 million barrels for the week, after falling 5.137 million barrels last week.
Cushing inventories rose this week by 741,000 barrels.
After the data was released at 4:42 p.m. EDT, the benchmark WTI was trading at $ 6,872 while Brent crude was trading at $ 71.26 per barrel.
By Julianne Geiger for OilUSD
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