U.S. Crude Inventories Decline by 6.1 Million Barrels

The Energy Information Administration (EIA) recently released a report highlighting a significant decrease in U.S. commercial crude inventories. According to the report, inventories fell by 6.1 million barrels during the week ending August 18th, surpassing analysts' expectations. On average, analysts had predicted a decrease of 4.24 million barrels, making this decline even more notable.

The EIA report also disclosed additional data on gasoline and distillate supplies. Gasoline supply experienced a growth of 1.5 million barrels, while distillate supplies increased by 900,000 barrels during the same week. Market analysts had foreseen a decline of 1.15 million barrels in gasoline stockpiles, with distillates expected to remain mostly unchanged.

Furthermore, the report highlighted reductions in crude stocks at the Cushing, Oklahoma, Nymex delivery hub. Crude stocks at this hub declined by 3.1 million barrels during the week, as stated by the EIA.

As a result of this news, oil futures experienced a slight loss with October West Texas Intermediate crude falling by $1.02, or 1.3%, to $78.61 per barrel on the New York Mercantile Exchange. However, prices recovered slightly from a low of $78.27 prior to the release of the supply data.

These findings demonstrate a significant decrease in U.S. commercial crude inventories, surpassing initial expectations. This development may have an impact on the overall energy market as supply levels fluctuate.