EIA data show first U.S. crude-supply decline in 3 weeks

Bloomberg News

Oil futures turned higher Wednesday after a U.S. government snapshot of crude supplies revealed a larger-than-expected drawdown in crude stockpiles, the first in three weeks. The market also digested news that the Organization of the Petroleum Exporting Countries and their allies will now hold their ministerial meetings on July 1 and July 2. They had previously been scheduled for June 25-26, but analysts said some producers wanted the meetings to follow the Group of 20 leaders summit held of June 28-29.“Middle East conflict is sure to influence crude prices, with a frenetic end to the month of June as the G20 meeting and more details to emerge on the possibility of an extension to the OPEC+ supply cut agreement,” said Alfonso Esparza, senior market analyst at Oanda, in an email update. West Texas Intermediate crude for July delivery CLN19, -0.45% rose 22 cents, or 0.4%, to $54.12 a barrel on the New York Mercantile Exchange. The July contract, which expires at Thursday’s settlement, had been trading lower ahead of the supply data. August Brent crude BRNQ19, -0.19%  added 14 cents, or 0.2% to $62.28 a barrel on ICE Futures Europe. It wrapped up Tuesday at $62.14, the highest settlement in a week. The Energy Information Administration reported Wednesday that U.S. crude supplies fell by 3.1 million barrels for the week ended June 14. That followed two consecutive weeks of gains.  The American Petroleum Institute on Tuesday reported an 812,000-barrel fall, according to sources. The EIA data also showed that gasoline inventories were down 1.7 million barrels, while distillate stockpiles edged lower by 600,000 barrels last week. The S&P Global Platts survey had shown expectations for supply increases of 1 million barrels each for gasoline and distillates. Broader financial market action continues to color energy market sentiment. Tuesday’s oil-price gains came after a tweet from U.S. President Donald Trump suggested progress in trade talks with China, lifting benchmark stock indexes and easing concerns over energy demand.