Oil Shrugs Off U.S. Inventory Decline in Line With Expectations

Domestic oil stockpiles fell 6.91 million barrels: EIA
The API reported Tuesday a 7.23 million-barrel stock draw

By Jessica Summers

(Bloomberg)

Oil gave up its gains after a U.S. government report showed a crude stockpile decline very close to what analysts were expecting.

Futures in New York fell Wednesday after rising as much as 1.6% before the report. U.S. crude inventories dropped 6.91 million barrels last week, according to data from the Energy Information Administration. The draw was in line with the 7.23 million-barrel drop the American Petroleum Institute reported Tuesday.

West Texas Intermediate crude for October delivery fell 10 cents to $57.30 a barrel at 10:52 a.m. on the New York Mercantile Exchange.

Brent for November settlement advanced 25 cents to $62.63 a barrel on the ICE Futures Europe Exchange. The global benchmark traded at a $5.43 premium to WTI for the same month.

To contact the reporter on this story:
Jessica Summers in New York at jsummers24@bloomberg.net

To contact the editors responsible for this story:
Serene Cheong at scheong20@bloomberg.net
Catherine Traywick, Joe Carroll