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U.S. Oil Inventories Fell by 4.8M Last Week

Published 06/09/2019, 01:05 am
Updated 06/09/2019, 01:25 am
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Investing.com - Oil inventories declined by 4.77 million barrels last week, the Energy Information Administration reported Thursday, a larger drawdown than anticipated.

Analysts predicted that inventories fell by about 2.49 million barrels for the week ended August 30, according to forecasts compiled by Investing.com.

WTI Futures climbed 2.6% to $57.71 following the report. It was trading around $57 just before the release.

Brent, the global benchmark for oil, rose 2.5% to $62.19.

Gasoline inventories fell by 2.4 million last week, compared with expectations from a drop of about 1.52 million barrels.

Distillate stockpiles, which include heating oil, posted a surprise drop of 2.54 million. Analysts were predicting a rise of about 0.48 million barrels.

Oil prices were climbing before the release of the inventory data, with bulls encouraged by the U.S. and China agreeing to more trade talks in October.

The trade battles between the two top economies, and the uncertainty about the impact on global oil demand, has been pressuring oil prices.

The talks were agreed to over the phone, the Chinese Commerce Ministry said, which was confirmed by a spokesman for the U.S. Trade Representative's office. No terms of the talks were given.

Last night, the American Petroleum Institute estimated a surprise rise of about 0.4 million barrels last week.

Today’s EIA data was delayed a day due to the Labor Day market holiday.

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