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Oil Stockpile Drops 427,000 Barrels, Less Than Expected: EIA By Investing.com

© Reuters.

By Liz Moyer

Investing.com — U.S. oil stockpiles dropped by less than expected in the latest week, the Energy Information Administration said on Wednesday.

fell 427,000 barrels last week, compared with analysts’ expectations for a draw of 2.817 million barrels.

“It’s another surprising dataset from the EIA; maybe not one that will please the oil bulls greatly, although looking at the way are trading this morning, you’d imagine it hasn’t made a material impact on the market,” said Investing.com analyst Barani Krishnan.

“One reason for the disconnect is that these numbers were for the period until last Friday, before the shutdown of the Colonial Pipeline. That’s why you even have a build in gasoline inventories for last week. Everyone knows what’s happened since last Friday, and the question is how long it will be before gas stations in the East Coast start receiving their regular supplies of fuel again, Till then, expect which is up another 2% this morning, to continue providing support to crude,” he added.

stockpiles, which include diesel and , fell 1.733 million barrels in the week against expectations for a draw of 1.080 million barrels, the EIA data showed.

were down 223,000 barrels. The fell 0.4%, according to the EIA report.

rose 378,000 barrels last week the EIA said, compared with expectations for a draw of 600,000 barrels.

“But back to the EIA dataset, the real reason for the unspectacular crude draw seems to be a complete cratering in U.S. crude exports, to 1.8 million barrels per day last week from a record 4.1 million bpd in the previous week. That’s a drop of more than 50%. Crude oil imports, meanwhile, averaged 5.5 million bpd, up by 37,000 from the previous week, adding to the broader supply,” Krishnan said. “More disturbingly, perhaps for some oil bulls, was production, which was up for the first time in weeks, to 11 million bpd, though the week-on-week increase itself was just about 100,000 bpd from a previous 10.9 million. On the bright side, diesel-dominated distillates remain an outperformer, signaling a steady pick up in trucking and other transportation demand.”

 

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