Oil Prices Hold Gains As API Reports Crude Inventory Drawdown

This week, the American Petroleum Institute (API) estimated the drawdown from crude oil inventories at 3.09 million barrels.

US crude inventories have lost some 68 million barrels since the start of the year.

The previous week, API reported a drop in oil inventories of 3.670 million barrels, compared to 2.633 million barrels that analysts had predicted.

Oil prices traded Tuesday ahead of the data release, with WTI trading 0.49% to $ 75.94 on the day, but up $ 6 a barrel on the week. Brent was trading 0.51% at $ 79.00 $ 72.56 daily and $ 6.50 weekly.

US oil production has grown slowly but steadily. For the week ending December 17, the last week for which the Energy Information Administration provided data, crude oil production in the United States was 11.6 million bpd, an increase of 600,000 bpd since the start of the year.

API reported a drop in gasoline inventories of 319,000 barrels for the week ending Dec. 24, after building 3.701 million barrels the week before.

Inventories of distillates decreased by 716,000 barrels for the week, after last week’s drop of 849,000 barrels. Cushing saw an increase of 1.594 million barrels this week.

At 4:40 p.m. EST, WTI was trading at $ 76.09 with Brent trading at $ 79.12.

By Julianne Geiger For OilUSD

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Felix J. Dixon