Crude Oil Combined Asia After API Estimates Show Surprise Draw, EIA Awaited
Oil prices were mixed in Asia on Wednesday after industry estimates for us stockpiles showed unexpected draw, nonetheless the market awaits official data to confirm
On the modern York Mercantile Exchange crude futures for March delivery rose 0.74% to $63.86 a barrel, throughout London’s Intercontinental Exchange, Brent eased 0.12% to $66.20 a barrel.
The American Petroleum Institute (API) said Tuesday that US oil supplies fell by the surprise 1.050 million barrels a while back.
Gasoline inventories declined by 227,000 barrels, while distillate supplies jumped 4.552 million barrels. Analysts expected a build of 3.189 million barrels in crude, gasoline stocks up by 459,000 barrels and distillates expected down 1.419 million barrels.
Supplies at the oil storage hub of Cushing, Oklahoma fell by 663,000 barrels.
The API figures are then official data from the Energy Information Administration (EIA) on Wednesday. The API and EIA figures often diverge.
Overnight, oil prices settled lower prior to inventory estimates and amid a slowdown in refinery activity.
Investor fears of the development of domestic oil stockpiles comes as refinery maintenance season gets underway, lowering both refinery activity and consideration in crude oil while pressuring crude oil prices.
Crude oil production, meanwhile, predicted to stay above Ten million barrels per day as US shale producers improve output to consider benefit for higher oil prices.
Sentiment on oil has turned bearish in recent sessions despite ongoing efforts from major oil producers to curb production – included in the OPEC-led output cut agreement- plus the surge in oil demand growth.