Oil Inventories Fall by 448,000 Barrels Last Week: API

By Yasin Ebrahim

Investing.com -- U.S. crude inventory fell by more than expected last week, the API reported Tuesday, snapping two weeks of gains just as attention shifts toward progress on talks to revive Iranian nuclear deal that could usher in fresh crude supplies from Tehran.      

West Texas Intermediate, the U.S. benchmark, traded at $86.94 a barrel following the report after settling down 3.2% at $86.53 a barrel. 

U.S. crude inventories fell by 448,000 barrels for the week ended Aug. 12. That compared with a build of 2.2 million barrels reported by the API for the previous week. Economists were expecting an increase of about 117,000 barrels. 

The API data also showed that gasoline inventories fell by 4.5 million barrels last week, and distillate stocks decreased by 759,000 barrels.

The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies fell by about 275,000 barrels last week.

Oil prices have made a poor start to the week as investors await further developments on talks to revive the Iranian nuclear deal that could lift the ban on energy exports from Iran, supplying the market with fresh barrels.