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03/07/24
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Crude Prices Slightly Higher as US Crude Oil Inventories Drop
On Wednesday, crude prices were steady after trading higher on a larger-than-expected decline in U.S. crude stockpiles while gains were capped by economic headwinds from the eurozone and China.
Brent crude futures inched 14 cents, or 0.16% higher, to $86.38 per barrel. U.S. West Texas Intermediate (WTI) crude futures rose 14 cents, or 0.17%, at $82.95 per barrel.
In the previous session, both benchmarks reached their highest levels since April but closed in the red after the U.S. National Hurricane Center said Hurricane Beryl would weaken into a tropical storm by the time it gets to the Gulf of Mexico.
According to market sources citing API figures on Tuesday, U.S. crude oil inventories dropped by 9.163M barrels in the week that ended on June 28. Gasoline inventories however rose by 2.468M barrels and distillates declined by 740K barrels.
Analysts had expected a decline of 700K barrels from crude inventories, a 1.3M barrel fall in gasoline stocks, and a 1.2M barrel drop in distillates stocks.
The Energy Information Administration will release its weekly data later today.
Traders will be focused on U.S. gasoline demand, which will likely increase as the summer driving season demand increases with the Independence Day holiday this week.
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