INTERACTIVE: Surprise US crude stocks draw triggers surge in crude futures

Sophie Udubasceanu

10-May-2017

LONDON (ICIS)–Oil prices rose sharply during the Wednesday session, fuelled by a larger-than-expected weekly fall in US crude oil and distillates inventories.

Data from the Energy Information Administration (EIA), released at 15:30 London time, showed that crude stockpiles had dropped by 5.2m barrels in the week ending 5 May, well above expectations of a 1.8m barrel decline. The drop in crude stocks was most likely driven by lower US oil imports.

The bearish price trend was further exacerbated by data also showing that distillates stocks, including diesel and heating oil, had dropped by 1.6m barrels, against expectations of a 1m-barrel draw.

US gasoline inventories meanwhile fell by 150,000 barrels, compared with expectations of a 538,000 barrels drop.

Crude oil futures rocketed shortly after the data emerged. Just before the data was released, July Brent was trading at $49.50/bbl, up 77 cents/bbl from the previous close, while June WTI was trading at $46.65/bbl, 77 cents/bbl higher.

At 16:29 London time, July Brent was trading at $50.04, up $1.31 from the previous close, while June WTI was trading at $47.25/bbl, up $1.37/bbl.

 

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