U.S. inventory draw of 3.2 MMBO
Crude oil prices settled higher for a third day Wednesday as the Department of Energy reported the third consecutive week of crude oil draws. U.S. inventories decreased by 3.2 MMBO, slightly more than the average economist estimate of 3.1 MMBO.
Today’s figures did show more gasoline pumped into storage, however, an unusual occurrence in the summer driving season. Gasoline inventories grew by 1 MMBO and distillates, rose 1.8 MMBO. Both were expected to show draws this week along with crude oil.
This indicates a sentiment that gasoline demand will weaken more than expected or that the crude glut will be reflected by a gasoline glut, said Troy Vincent, crude oil analyst for ClipperData, told Reuters.
International factors also lent support to oil prices this week, with crude oil rallying earlier today on news the Niger Delta Avengers blew up a Chevron (ticker: COP) well in Nigeria, rejecting peace talks with the government. Rebel attacks have brought oil output in Nigeria, once Africa’s largest crude producer, to a 20-year low.
