U.S. commercial crude oil inventories fell 8.6 million barrels in the week ending October 9, the EIA reported. WTI rose 3.03% to $97.97 after the unexpected draw, according to Zaye Capital Markets.
U.S. commercial crude oil inventories, excluding the Strategic Petroleum Reserve (SPR), dropped by 8.6 million barrels from the week ending October 2 to the week ending October 9. The U.S. Energy Information Administration (EIA) released the data on October 15.
Inventories fall to 415.577 million barrels
Commercial crude stocks came in at 415.577 million barrels on October 9, against 424.134 million barrels on October 2. That is a 2.0% weekly decline and a 1.9% drop from a year earlier.
Total petroleum stocks stood at 1.507 billion barrels, down 13.4 million barrels week on week. Gasoline inventories increased 3.5 million barrels, while distillate inventories decreased 2.5 million barrels, the EIA said.
WTI jumps after the draw
Naeem Aslam, CIO at Zaye Capital Markets, said that on Thursday WTI rose 3.03% to $97.97 after the unexpected inventory decline, while Brent settled at $105.92 per barrel. He said he believes the draw signals stronger near-term physical demand, though broader concerns about global consumption and future supply availability continue to create volatility.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, called the decline "the largest draw since February, partly reflecting production shut-ins caused by Hurricane Isaias". He also noted that U.S. crude production fell 0.3 million barrels per day to 13.68 million barrels per day, the lowest since May.
Macquarie had expected a large draw
Macquarie strategists had forecast a 9.1 million barrel draw for the week ending October 9, citing Gulf shut-ins, low imports and high exports. They warned that the timing of cargoes remained a source of potential volatility in the weekly crude balance.
Meanwhile, the SPR held 283.0 million barrels on October 9, flat week on week and 30.6% lower than a year earlier.
Source: Rigzone
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