API Crude Inventories Fell by A Bigger-Than-Expected 6.83 Million Barrels

Data released by the American Petroleum Institute (API) at midnight Beijing time on Wednesday showed that CRUDE oil inventories in the United States fell by 6.829 million barrels in the week ended July 24, compared with an expected increase of 500,000 barrels. Gasoline stocks rose by 1.083 million barrels. Refined refinery inventory increased by 187,000 barrels. After the release of the data, American Oil edged higher in the short term to close at $41.08, pared losses to 1.25 percent.

Oil prices fell during the day as fading hopes for a US economic stimulus package, deep partisan disagreements over the economy and a "pause" in Major League Baseball slowed a rebound in demand, according to prominent financial blogger ZeroHedge. While API data showed a steeper than expected drop in U.S. crude inventories, sentiment was mixed after WTI crude hit $41 a barrel after the data was released, given last week's unexpectedly large increase in data and doubts about consumer demand for gasoline. Analysts at Tyche Capital believe demand for crude oil is now significantly weaker, both for drivers and for the airline industry.

Data from the American Petroleum Institute showed U.S. crude oil inventories fell much more than expected last week, with gasoline and refined refining stocks both rising unexpectedly.

U.S. crude oil inventories fell by 6.829 million barrels to 531 million barrels in the week ended July 24, API said. Cushing crude stocks rose 1.114 million barrels.

API said gasoline inventories rose by 1.083 million barrels last week. Refined refinery inventories rose by 187,000 barrels last week.

U.S. crude oil imports fell 1.3 million barrels a day last week, THE API data also showed.

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