Commercial crude oil inventories in the United States experienced another significant decline, according to figures released on Wednesday by the U.S. Energy Information Administration (EIA).
Larger-Than-Expected Drawdown
These reserves decreased by 3.7 million barrels during the week ending August 2nd, surpassing the 1.8 million barrel reduction anticipated by analysts, based on a consensus compiled by Bloomberg.
Sixth Consecutive Weekly Decline
This marks the sixth consecutive week of contraction in U.S. inventories, which stood at 429.3 million barrels at the end of last week. This level is about 6% below the five-year average.
Gasoline Inventories Rise
In contrast, gasoline inventories increased by 1.3 million barrels, whereas analysts had expected a decline of 1.8 million barrels.
Record Crude Oil Production
On the supply side, crude oil production continued to climb, reaching a new record high of 13.4 million barrels per day (mb/d).
Slight Decrease in Demand
In terms of demand, the volume of refined products delivered to the U.S. market experienced a slight decrease, falling to 19.97 mb/d compared to 20.72 million barrels per day the previous week.
Year-on-Year Demand Decline
The four-week average demand, a more closely watched indicator by the market, shows a slight year-on-year decline, reaching 20.29 mb/d compared to 20.69 mb/d a year ago (-2%).
Oil Prices Supported by EIA Data and Middle East Tensions
The data published by the EIA on Wednesday continued to support oil prices, which were already buoyed by escalating tensions in the Middle East.
Production Suspension in Libya
Additionally, in Libya, the National Oil Corporation (NOC) announced a “partial” suspension of production at the al-Sharara field, operated in partnership with Spanish company Repsol and French company Total, following protests at the site.
Market Response
Around 4:45 PM GMT, the price of a barrel of West Texas Intermediate (WTI) for September delivery rose by 1.99% to $74.66.
The price of a barrel of Brent crude from the North Sea, for October delivery, climbed by 1.97% to $77.99.