Oil Pares Losses After Larger-Than-Expected Crude Draw

Oil Pares Losses After Larger-Than-Expected Crude Draw

(Bloomberg) — Crude pared losses after a U.S. government report showed oil inventories fell more than unexpected just before Hurricane Ida slammed into Louisiana over the weekend.

Futures fell 1.2% in New York on Wednesday. Domestic crude supplies declined by 7.17 million barrels last week and gasoline supplies rose by 1.29 million barrels, according to Energy Information Administration data. The industry-funded American Petroleum Institute had reported a crude supply decline of over 4 million barrels. Among the fuels, the group reported a rise in gasoline and drop in diesel stocks.

Also, the OPEC alliance will be meeting shortly after this EIA report to discussion its next steps in restoring production. The group might likely rubber stamp its 400,000 barrel a day production increase plan or take steps to respond to demand pull-back following the spread of the Delta variant.

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