Oil inventories fell much more than expected last week: API

By Yasin Ebrahim

Investing.com -- U.S. crude stockpiles fell much more than expected last week, the API reported Tuesday, providing bulls with further ammunition to load up on bullish bets at a time when storm-driven blizzard conditions are expected to curb travel and sap demand. 

West Texas Intermediate, the U.S. benchmark, traded at $76.02 a barrel following the report after settling up 90 cents at $75.99 a barrel. 

U.S. crude inventories fell by 3.1 million barrels for the week ended Dec. 14. That compared with a build of 7.8M barrels reported by the API for the previous week.

Economists were expecting a draw of 167,000 barrels. 

The larger inventory draw comes just as fresh demand jitters emerge.  A storm is expected to develop in the Midwest later this week, bringing blizzard conditions on Thursday and Friday, leading to heavy snow and rain that will likely disrupt travel and energy demand.

The API data also showed that gasoline inventories increased by 4.5M barrels last week, and distillate stocks rose by 830,000 barrels.

The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies fell by about 1.7M barrels last week.