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The American Petroleum Institute (API) reported on Tuesday a major drawdown in crude oil inventories of 5.147 million barrels for the week ending November 6.
Analysts had predicted an inventory draw of only 913,000 barrels.
In the previous week, the API reported an incredibly large drawdown in oil inventories of 8.01 million barrels, after analysts predicted a construction of 890,000 barrels for the week.
Oil prices were trading Tuesday afternoon ahead of API data release, supported by major media calling the US presidential election for Joe Biden and OPEC + suggests it could extend the current cycle of production cuts beyond January . The bearish factors this week include the continued increase in oil production in Libya and further blockages in Europe.
In the run-up to Tuesday’s data release, at 3:57 pm EDT, WTI was up $ 1.07 (+ 2.66%) to $ 41.36, an increase of nearly $ 4 a barrel during the week . The Brent crude oil benchmark was up $ 1.21 at the time (+ 2.85%) to $ 43.61, up more than $ 3 a barrel over the week.
Oil production declined last week, continuing its swing action as it bounces between 9.7 million bpd and 11.1 million bpd. According to the Energy Information Administration, US oil production is currently 10.5 million barrels per day.
API reported a draw in gasoline inventories of 3.297 million barrels of gasoline for the week ending November 6, up from 2.45 million barrels the previous week. Analysts had expected a break even of 263,000 barrels for the week.
Stocks of spirits fell by a whopping 5.619 million barrels during the week, compared to last week’s 577,000 barrel draw, while Cushing’s stocks fell by 1.17 million barrels.
At 4:42 pm EDT, the WTI benchmark was trading at $ 41.61 while Brent crude was trading at $ 43.85.
By Julianne Geiger for Oil “
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