- Dominick Chirichella, Energy Management Institute
US crude oil inventories dropped after three consecutive weeks of gains, fresh data showed on Wednesday. According to the Energy Information Administration's (EIA) weekly report, US oil stockpiles fell 2.5 million barrels in the week ended August 12, compared to the 1.1 million barrel upturn seen in the previous seven days, while market analysts anticipated a slight increase of 300,000 barrels in the reported period. Furthermore, the EIA reported that gasoline inventories dropped 2.7 million barrels in the same period, following the 2.8 million barrel decline seen previously, whereas markets pencilled in a decrease of 1.5 million barrels. Meanwhile, distillate stockpiles rose 1.9 million barrels, after falling 2.0 million in the preceding week, while economic desks expected to see a 600,000 drop. On Tuesday, the American Petroleum Institute (API) reported a bigger-than-expected 1 million-barrel fall in US crude oil inventories and a 2.2 million climb in gasoline stockpiles for the week ending August 12.
Oil prices rebounded from their lows they touched two weeks ago amid fresh talks by some OPEC members to restrain output at the September meeting in Algiers. Nevertheless, analysts remain sceptical, arguing that the OPEC cartel and non-OPEC countries will not reach an agreement at their upcoming meeting next month.
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