Crude oil prices moved higher today after the U.S. Energy Information Administration reported an estimated inventory build of 5.9 million barrels for the week to August 4.
Fuel inventories, however, moved lower.
The crude build compared with a substantial inventory decline of 17 million barrels for the previous week—the largest drawdown in oil inventories for years.
The report comes a day after the American Petroleum Institute estimated oil inventories had added a little over 4 million barrels over last week.
In fuels, the EIA estimated substantial inventory declines for the week to August 4.
Gasoline inventories shed 2.7 million barrels during the week to August 4, which compared with a build of 1.5 million barrels for the previous week.
Gasoline production averaged 9.9 million bpd last week, which compared with 9.8 million bpd a week earlier.
In middle distillates, the EIA estimated an inventory draw of 1.7 million barrels for the week to August 4, which compared with a draw of 800,000 barrels for the previous week.
Middle distillate production averaged 4.9 million bpd last week, which compared with 4.9 million bpd a week earlier.
Oil prices have stabilized, meanwhile, as the upward potential was capped by fresh CPI data from China showing the first annual decline since February 2021, according to Reuters.
The report followed another, revealing that China’s oil imports had fallen by close to 20% in July from June, when they hit a record high. The data seems to have worried traders about the resilience of demand in the world’s top importer.
There is also concern about demand for oil in Europe and the United States amid a series of rate hikes aimed at reining in inflation but making life more expensive in the process.
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At the time of writing, Brent crude was trading at $86.96 per barrel, with West Texas Intermediate at $83.98 per barrel, both up from opening.
By Irina Slav for Oilprice.com
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