US oil inventories fall more than expected

US oil inventories fell by 3 million barrels last week, according to the Energy Information Administration.

Analysts had estimated that stockpiles rose by 2.56 million.

Stockpiles at Cushing, Oklahoma, a key delivery hub rose by 569,000 barrels. Gasoline inventories also increased, by 220,000 barrels.

The EIA’s release followed data from the American Petroleum Institute on Tuesday which showed a draw by 7.6 million barrels, after markets had expected a build by about 1.5 million.

This surprise draw sent oil prices higher. Ahead of the EIA’s release, West Texas Intermediate crude futures in New York were up 1.7% to $49.53 per barrel. WTI was last above $50 per barrel on June 29.

More to come …

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