Investing.com - U.S. crude inventories fell more than expected last week, but oil prices pared earlier gains as gasoline and distillate stockpiles surged.
The Energy Information Administration said in its regular weekly report that crude oil inventories decreased by 3.12 million barrels in the week to July 12.
That was compared to forecasts for a stockpile draw of 2.69 million barrels, after a decline of 9.5 million barrels in the previous week.
The EIA report also showed however that gasoline inventories unexpectedly increased by 3.57 million barrels, compared to expectations for a draw of 0.93 million barrels, while distillate stockpiles rose by 5.69 million barrels, compared to forecasts for a gain of just 0.61 million.
U.S. crude prices rose 0.4% to $57.83 a barrel by 10:38 AM ET (14:38 GMT), slightly lower than $57.89 prior to the publication.
London-traded Brent crude futures traded up 0.8% to $64.86 a barrel, compared to $64.94 ahead of the release.
U.S. crude had been on the rise before the publication, recovering just a small portion of the slide of more than 3% on Tuesday after U.S. Secretary of State Mike Pompeo indicated Iran had said it was prepared to negotiate about its missile program. Tension between the two countries over Tehran’s nuclear program had supported oil prices given speculation that the situation could escalate.
Oil rigs in the Gulf of Mexico were also still undergoing an attempt to restart production after the passing of Hurricane Barry. The Bureau of Safety and Environmental Enforcement said 1.1 million barrels per day of oil, or 58% of the region’s total, and 1.4 billion cubic feet per day of natural gas output remained shut.
The EIA report also showed however that gasoline inventories unexpectedly increased by 3.57 million barrels, compared to expectations for a draw of 0.93 million barrels, while distillate stockpiles rose by 5.69 million barrels, compared to forecasts for a gain of just 0.61 million.