The American Petroleum Institute (API) reported on Tuesday a draw in crude oil inventories of 3.500 million barrels for the week ending February 5.
Analysts had predicted an inventory build of 985,000 barrels for the week.
In the previous week, the API reported a draw in oil inventories of 4.261-million barrels, after analysts had predicted a build of 446,000 barrels.
Oil prices were trading up on Tuesday ahead of the data release, buoyed both by OPEC-driven optimism and the looming stimulus rollout that some are hoping will drive up oil demand.
At 3:15 p.m. EDT, before Tuesday’s data release, WTI had risen by $0.41 on the day (+0.71%) to $58.38—a near $4 increase from this time last week.
The Brent crude benchmark had risen on the day $0.57 at that time (+0.94%) to $61.13—also up nearly $4 on the week.
U.S. oil production stayed at 10.9 million bpd, according to the Energy Information Administration—still millions of barrels under March 2020 levels.
The API reported a build in gasoline inventories of 4.810 million barrels for the week ending February 5—after the previous week’s 240,000-barrel draw. Analysts had expected a 1.814-million-barrel build for the week.
Distillate stocks saw a decrease of 487,000 barrels for the week, after last week’s 1.622-million-barrel decrease.
Cushing inventories fell by 1.378 million barrels. Last week, inventories held in Cushing decreased by 1.885 million barrels.
Magellan Midstream Partners’ Cushing tanks as of Friday, Feb 5. Image courtesy Geospatial Insight TankWatch