Oil Inventories Unexpectedly Fall by 1.3M Barrels Last Week: API

By Yasin Ebrahim

Investing.com -- U.S. crude stockpiles unexpectedly fell last week, the API reported Tuesday, just as concerns about slowing demand and rising supply dominate attention.  

West Texas Intermediate, the U.S. benchmark, traded at $82.71 a barrel following the report after settling down 15 cents, or 0.2%, at $85.46 per barrel.

U.S. crude inventories decreased by 1.3 million barrels for the week ended Oct. 14, the API reported, compared with estimates for a rise of 1.6 million barrels, and a build of 7.0 million barrels reported in the previous week.

The API data also showed that gasoline inventories fell 2.2 million barrels last week, and distillate stocks fell by 1.1 million barrels.

The official government inventory report due Thursday is expected to show weekly U.S. crude supplies rose by 1.3 million barrels last week.

Oil prices have given up recent gains amid ongoing concerns about demand just as the U.S. is expected to ramp up the release of emergency oil supplies.

“Biden is expected this week to announce the release of the remaining 14 million barrels of the 180 million barrels that have been earmarked so far,” Commerzbank said in a note.