The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 3.608 million barrels for the week ending April 9.
Analysts had predicted a draw of 2.889 million barrels for the week.
In the previous week, the API reported a draw in oil inventories of 2.618 million barrels after analysts had predicted a smaller draw of 1.436-million barrels.
Oil prices were trading up on the day prior to the data release as OPEC’s Monthly Oil Market Report suggested a higher figure for 2021 oil demand than in its March report, along with reports of strong Chinese import data and increasing tensions in the Middle East.
At 3:06 p.m. EDT, WTI traded at $60.34, or 1.07% higher on the day and $1 per barrel higher than this time last week. Brent crude traded up at $63.85 per barrel or 0.90% up on the day.
While inventories of crude oil are falling, U.S. oil production slipped below 11 million bpd to 10.9 million bpd during the week ending April 2, according to the latest data from the Energy Information Administration, although the EIA’s prognosis is for a modest increase in U.S. production in May.
The API reported a build in gasoline inventories of 5.565 million barrels for the week ending April 9—after the previous week’s 4.553-million-barrel build. Analysts had expected a 786,000 barrel build for the week.
Distillate stocks saw a decrease in inventories this week of 3.006 million barrels for the week, after last week’s 2.810-million-barrel increase.
Cushing inventory figures rose by 917,000 barrels.
Post data release, at 4:41 p.m. EDT, the WTI benchmark was trading at $60.35, while Brent crude was trading at $63.86 per barrel.