Oil Prices Slip Despite Draw In Crude, Gasoline Inventories

Jon Energy, Market Commentary

A day after Saudi Arabia said it was willing to join a production cut extension and a day after the American Petroleum Institute estimated US crude oil inventories had declined by 1.3 million barrels, the Energy Information Administration joined in the festivities by reporting a 2.2-million-barrel draw in commercial oil inventories for the week to April 7.
Analysts had expected a moderate build of 125,000 barrels, but it’s worth noting that for the last 14 weeks, EIA has only twice reported draws, compared with a combined build of 49.5 million barrels for the period. This is the third draw.
For last week, the agency also reported refineries produced an average daily of 9.9 million barrels of gasoline and 5.1 million barrels of distillate, processing 16.7 million barrels of crude daily after the end of seasonal maintenance.

This post was published at FinancialSense on 04/12/2017.