Surprise crude draw drives up oil prices

This week, the American Petroleum Institute (API) estimated the drawdown from crude oil inventories at 3.089 million barrels.

US crude inventories have lost some 60 million barrels since the start of the year.

Analysts’ expectations for the week were a construction of 2.093 million barrels for the week.

The week before, API reported a decline in oil inventories of 747,000 barrels, compared to 1.667 million barrels that analysts had predicted.

Oil prices had traded more than 3% on Tuesday as the data release approached as earlier concerns about the Omicron variant faded into the landscape of the bullish outlook for OPEC + which prompted the group expects to increase production in January by another 400,000 bpd.

As of 3:00 p.m. EST, WTI had risen more than 3% to $ 71.96, an increase of more than $ 5 a barrel from this hour last week. Brent was trading up nearly 3% to $ 75.43 a barrel, almost $ 5 more

U.S. oil production for the week ending November 26 – the last week for which the Energy Information Administration provided data – increased 100,000 b / d to 11.6 million b / d – the second increase in this guy in so many weeks. Production is still down from the US peak of 13.1 million bpd before the pandemic.

API reported an increase in gasoline inventories of 3.705 million barrels for the week ending Dec. 3, after building 2.2 million barrels the previous week.

Distillate inventories also saw an inventory increase of 1.228 million barrels for the week, following the increase of 800,000 barrels last week. Cushing saw an increase of 2.395 million barrels this week.

By Julianne Geiger For Oil Octobers

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Felix J. Dixon