Crude oil inventories in the United States fell by a staggering 7.4 million barrels for the week ending August 30, according to The American Petroleum Institute (API). Analysts had expected a far smaller 900,000-barrel dip. For the week prior, the API reported a 3.4-million-barrel decrease in crude inventories. So far this year, crude oil inventories are more than 2 million barrels under where they were at the start of the year, having decreased by 10 million barrels, according to API data.
Oil prices continued their decline on Wednesday ahead of the API data release. Oils total loss in the past week is more than $7 per barrel. Disappointing economic data out of the United States and China spooked markets. Gasoline inventories also fell this week, by 300,000 barrels, on top of last week’s 1.86-million-barrel decrease. As of last week, gasoline inventories are 3% below the five-year average for this time of year, according to the latest EIA data. Distillate inventories fell also, by 400,000 barrels, on top of last week’s 1.4-million-barrel decrease. Distillates were already about 10% below the five-year average for the week ending August 23, the latest EIA data shows. Cushing inventories completed the draws, with a loss of 800,000 barrels, according to API data, which add onto the 486,000-barrel draw from the previous week. NN: Now we wait for todays EIA inventory report for confirmation.