EIA reports a crude oil draw of 2.4 MMBO

Crude oil inventories fell 2.4 MMBO for the week ended December 2, 2016, according to the Energy Information Administration. The decline in crude stocks was more than 1.0 MMBOPD more than analysts anticipated ahead of the report Wednesday.

Crude oil inventory report for the week ended Dec. 2, 2016.

Despite the larger-than-expected draw from crude oil inventories, the report was still bearish, with the EIA also reporting gasoline stocks grew by 3.4 MMBO compared to expectations of just 1.9 MMBO for the week. Distillate stockpiles, which include diesel and heating oil, were up by 2.5 million barrels, versus expectations for a 1.8 million-barrel increase, the EIA data showed.

Gains from last week’s OPEC production agreement are likely fully priced in to crude oil now, said Jim Ritterbusch, president of energy advisory firm Ritterbusch & Associates.

“From here, the market is likely to be taking a wait and see approach until evidence of actual OPEC curtailments is seen in about six or seven weeks,” Ritterbusch said.

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