Reuters. Investing.com – Administration According to the information administration, oil reserves fell nearly as much as expected last week.
Against expectations to draw 1.02 million barrels, fell 1 million barrels. That comes a week after crude stocks fell 8.8 million barrels.
Inventory has declined in all but one of the last six weeks as the economy struggles to get back to life after the covid related shutdown earlier this year.
, US benchmark, fell 3% in morning trade after release.
Crude oil stored at Oklahoma is 975,000 barrels higher than the expected build of 1.1 million barrels.
Barani Krishnan, an analyst at Investing.com, said the 180-degree surge is more than the forecast of 1.9 million people. “But if you think about it, that number isn’t as significant as it is given the general slowdown in driving at this time of year.”
Krishna added: “The draw of 8.8 million barrels is subject to double the expectations and that may be due to the strong activity of delivery and trucking as many people order everything from clothes to groceries at their home.”
“For me, what this report really turns out to be is that last week the EIA estimated production at 9.9 million barrels per day, down from 1,000,000 bpd from the previous week, and with no increase in the U.S. at all. It has been seen since mid-September. I think some of the effects of Hurricane Delta have been over-reviewed on the product side in this report and it remains to be seen whether EIA will do this in next week’s report. “
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