Crude Oil Supplies Unexpectedly Show Significant Decrease

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Crude oil inventories unexpectedly fell last week, according to data released by the Energy Information Administration on Wednesday. Gasoline stockpiles also declined.

U.S. commercial crude oil inventories decreased by 4.0 million barrels compared to the previous week. Experts had forecast an increase of 1.3 million barrels in crude oil for the week ended October 30.

At 335.9 million barrels, U.S. crude oil inventories are near the upper limit of the average range for this time of year.

Total motor gasoline inventories decreased by 300,000 barrels last week, and are above the upper limit of the average range. An increase of 800,000 barrels was expected.

Distillate fuel inventories decreased by 400,000 barrels, while propane/propylene inventories decreased by 1.4 million barrels.

The American Petroleum Institute reported that crude supplies dropped 3.28 million barrels last week. Gasoline stocks rose by 500,000 barrels and distillates jumped by 1.79 million barrels.

The API report is not as closely watched because participation is voluntary.

The EIA reported that, over the last four weeks, motor gasoline demand has averaged 9.0 million barrels per day, unchanged from the same period last year. Distillate fuel demand has dropped 14.8 percent and jet fuel demand is 3.1 percent lower.

Light sweet crude moved to $80.26 per barrel, up $0.66 on the session. Prices touched as high as $81.06 a barrel shortly after the EIA data was released.

Crude oil inventories unexpectedly fell last week, according to data released by the Energy Information Administration on Wednesday. Gasoline stockpiles also declined. U.S. commercial crude oil inventories decreased by 4.0 million barrels compared to the previous week. Experts had forecast an increase of 1.3 million barrels in crude oil for the week ended October 30. (Market News Provided by RTTNews)