Brent steady after bigger-than-expected US crude stock draw

Both commercial and emergency US crude stocks were drawn heavily on the week, official Energy Information Administration (EIA) data shows.

PHOTO: Crude oil and oil products storage tanks with refinery near Long Beach, US. Getty Images

The country’s commercial crude stocks fell by 5.40 million bbls to a six-week low of 435.36 million bbls. The draw superseded predictions of a 440,000-bbl drop from analysts polled by Reuters.

Volumes of crude released from strategic petroleum reserves (SPR) accelerated to 4.10 million. These emergency reserves have been drawn every week since late March in an effort to boost domestic production and keep a lid on gasoline and diesel prices for consumers.

Gasoline stocks rose by 2.21 million bbls on the week, and diesel stocks by 1.12 million bbls, which may signal weaker demand.

Front-month ICE Brent jumped $0.30/bbl in the minute after the data was released today, before dropping back to similar levels around $92.40/bbl.

By Erik Hoffmann

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