According to the Energy Information Administration (EIA), U.S. commercial crude inventories experienced a reduction of 700,000 barrels during the week ending on July 14. This figure came as a surprise to analysts, as prior estimates from S&P Global Commodity Insights anticipated a more substantial decline of 2.25 million barrels.
Gasoline and Distillate Stockpiles Show Mixed Results
In addition to the decline in crude inventories, the EIA report also indicated a slight decrease of 1.1 million barrels for gasoline. On the other hand, stockpiles of distillates remained relatively unchanged throughout the week. Analysts had predicted a smaller weekly decrease of 900,000 barrels for gasoline, while distillate stockpiles were expected to remain steady.
Cushing Crude Stocks Experience Substantial Decrease
Furthermore, the EIA reported a substantial drop of 2.9 million barrels in crude stocks at the Cushing, Oklahoma Nymex delivery hub for the same week. These promising numbers contributed to the continued upward trajectory of oil futures.
Oil Futures Maintain Positive Momentum
Following the release of the supply data, oil futures continued their upward ascent. In particular, August West Texas Intermediate crude (CLQ23) experienced a rise of 58 cents, or 0.8%, reaching $76.33 per barrel on the New York Mercantile Exchange. Prior to the publication of inventory numbers, prices had already reached $76.65.
This update on U.S. commercial crude inventories highlights a smaller-than-expected decline and mixed performance across gasoline and distillate stockpiles. However, the significant drop in crude stocks at the Cushing delivery hub and the overall positive momentum in oil futures suggest promising conditions for the market.
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