Crude, Gasoline Inventories Drop Much More Than Expected: API
US crude oil inventories were down by 5.8 million barrels last week, according to the latest figures Wednesday from the American Petroleum Institute.
Analysts had expected a more modest stockpile decrease of 2.3 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub dropped by 1.4 million barrels.
Gasoline stocks were down by 5.7 million barrels.
The news from API didn't stop oil stocks from falling Wednesday; concerns about climbing OPEC exports and a stronger dollar sent oil prices down about 4%, ending an 8-day rally that analysts say was based on optimism that the continued rise in US oil production is waning.
Word is circulating that Russia will not support further cuts in oil exports, while OPEC's crude production rose to it's highest level of the year last month even as output from Libya and Nigeria continues to rise.
By Mike Shiloh
Copyright July 05, 2017, Mike Shiloh, Texas Energy Report LLC, www.texasenergyreport.com, All rights are reserved