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© Reuters. Investing.com – US crude stocks fell last week, defying business expectations of a rise, but long commodity investors still lost nearly 6% in September.
Analysts followed by Investing.com expected a build-up of 1.57 million barrels for the week ending September 25. But the data released by the Energy Information Administration showed a tie instead.
Eight of the previous nine weeks of inventories reported by the EIA had seen reductions.
However, the positive pull of US crude did not translate into monthly returns for long-term investors in the commodity.
The price in New York, the key indicator of the price of US crude, ended the day up 93 cents, or 2.4%, at $ 40.22.
For September, the WTI lost 5.6%, although for the third quarter it was up 2.4%.
London-traded crude, the world’s benchmark oil index, fell 8 cents, or 0.2%, to close the day at $ 40.95. Brent lost 9.6% in September and 0.5% in the third quarter.
Traders have been watching weekly trends in US crude inventory for signs that demand is picking up after months of trade lockouts due to COVID-19. On Tuesday, the industry’s own estimate said oil reserves fell in barrels last week.
Crude oil stored in Oklahoma fell 1.5 million barrels to 263.5 million, the EIA said.
“Once again, the EIA appears to have come to the ‘rescue’ of the oil bulls by estimating a tie for last week against the anticipated build by the market,” said Investing.com analyst Barani Krishnan. “And to further ‘sweeten’ the deal, it also has a bigger drop compared to the forecasts.”
“However, oil prices are not going up much with these numbers, and it is not just from surprise. The market is almost completely obsessed with the new explosion of coronavirus cases in the US and Europe and what that could do for demand. “
And while the surprise crude extraction, in itself, was encouraging, it signaled the exit of nearly two million barrels from the Strategic Petroleum Reserve, which he said, “makes up for the number of headlines everyone is watching.”
“If you ask me, the real positive conclusion from this is the increase in exports by almost 500,000 barrels per day compared to the previous week. But, of course, that is not attracting much market attention. “
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