Commodities News

Oil Inventories Fall by 2M Barrels Last Week: API

U.S. crude stockpiles fell more than expected last week just as traders price in the prospect of increased global supplies as the U.S. and Iran are believed to be nearing a conclusion on talks concerning a nuclear deal that could lift energy export sanctions on Tehran.  

West Texas Intermediate, the U.S. benchmark, traded at $89.80 barrel on the news, after settling down 2.2% at $89.36 a barrel.

U.S crude inventories fell by 2.0 million barrels for the week ended Feb. 4. That compared with a draw of 1.6 million barrels reported by the API for the previous week. Economists were expecting a draw of about 675,000 barrels. 

The API data also showed that gasoline inventories slipped by 1.1 million barrels last week, and distillate stocks decreased by 2.2 million barrels.

The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies rose by about 369,000 barrels last week.

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