U.S. crude supplies drop by 11 million barrels

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Oil futures climbed to their highest levels in about a week on Wednesday after U.S. government figures reveal that domestic crude inventories dropped by 11 million barrels last week. The Energy Information Administration data “were definitely on the bullish side with a much larger-than-expected draw in crude oil” stockpiles, said Tariq Zahir, managing member at Tyche Capital Advisors. The Energy Information Administration on Wednesday reported that U.S. crude supplies fell by 10.8 million barrels for the week ended July 19. The figure was in line with the 11 million-barrel drop reported by the American Petroleum Institute on Tuesday. . Crude inventories are “now down 40 million barrels from their 2019 peak after six consecutive weekly declines,” said Matt Smith, director of commodity research at ClipperData. The six-week stretch of falling crude supplies is the longest since the 10-week decline from the week ended Nov. 178, 2017 to Jan. 19, 2018, according to an analysis of EIA data provided by Tyler Richey, co-editor at Sevens Report Research. The government report also showed that gasoline inventories were down by 200,000 barrels, while distillate stockpiles rose by 600,000 barrels last week. The S&P Global Platts survey had shown expectations for a supply decrease of 1.1 million barrels for gasoline, while distillates were forecast to rise by 1.7 million barrels. Meanwhile, the EIA estimated that domestic oil production fell by 700,000 barrels to 11.3 million barrels for the week ended July 19 following Hurricane Barry. Output still stands above the year-ago level of 11 million barrels a day. Tensions in the Middle East continue to threaten the flow of oil in the region, prices for oil trade lower month to date.