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Crude oil futures rose on Wednesday after a larger-than-expected drawdown in U.S. inventories, in thin trading ahead of the U.S. Independence Day holiday.
The weekly report from the US Energy Information Administration showed broad-based declines in crude and refined product inventories, with crude inventories falling Crude oil inventories unexpectedly fell by 12.2 million barrels, gasoline stocks fell by 2.2 million barrels, and distillate stocks fell by 1.5 million barrels.
Crude oil supplies are 4% below seasonal averages, gasoline inventories are 1% below average levels, and distillate stocks are 10% below normal for this time of year.
The U.S. Energy Information Administration also noted gains in implied demand for gasoline and distillates, with gasoline product supplies rising by about 500,000 barrels per day to 9.424 million barrels per day, and distillate supplies rising by about 200,000 barrels per day to 3.715 million barrels per day.
“Strong exports, a slight decline in imports and a recovery in refinery runs contributed to a draw in crude inventories of about 12 million barrels,” said Matt Smith, an analyst at Kpler. He said In response to the data, according to Reuters.
Strong demand data is also expected next week, as today marks the start of the extended weekend, with AAA New record expected for car passengers at 60.6 million.
NYMEX Crude Oil (CL1:COM) August delivery contract expired in the first month +1.3% to $83.88 a barrel, its highest settlement price since April 16, while September Brent crude (CO1:COM) also closed at $83.88 a barrel. +1.3% To $87.34 a barrel, the best level since April 30.
Meanwhile, the price of natural gas on the New York Mercantile Exchange (NG1:COM) for August fell for the seventh straight session, -0.7% to $2.418/MMBtu, its lowest settlement since May 15.
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Oil supplies also have Tight“OPEC+ exports have already fallen sharply in June, led by the Gulf states and Iraq, partly due to summer crude burning amid the ongoing Middle East heatwave,” Energy Aspects said, referring to higher energy demand due to increased air conditioning use.
But the threat from Hurricane Beryl appears to have receded, with recent forecasts showing the storm will miss most offshore drilling platforms in the Gulf of Mexico based on its current projected path.