Oil prices climbed higher today after the US Energy Information Administration reported a crude oil inventory drawdown of 2.8 million barrels for the week through June 24.
A day earlier, the American Petroleum Institute had estimated an inventory of 3.8 million barrels for the week ending June 24, after reporting its largest oil stockpile build since February for the week ending June 17. June, at 5.6 million barrels.
In fuels, the EIA reported builds across the board for the week to June 24.
Gasoline inventories gained 2.6 million barrels in the reporting week, according to the EIA in very welcome news for motorists in the United States.
Gasoline production averaged 9.5 million barrels last week, an increase from the previous week, for which the EIA has not yet provided data.
In middle distillates, the EIA estimated a build of 2.6 million barrels for the week through June 24, noting that this was about 20% below the five-year average for this period of the year. year.
Middle distillate production averaged 5.1 million barrels per day last week, which the EIA said was down from the week of June 17.
EIA data for the week through June 17 is released a week late due to systemic issues reported by the EIA last Wednesday.
Brent crude was trading at $119.50 a barrel at the time of writing and West Texas Intermediate was changing hands for $113.20 at the time of writing, both up more than a percentage point after a spike yesterday after API inventory data was released.
Meanwhile, fuel supplies remain tighter than usual in the United States despite record prices, prompting President Biden to announce a four point plan for lowering retail prices last week.
The plan, as presented to Congress, includes a proposed three-month suspension of the federal fuel tax and a call for states to suspend state fuel taxes.
The president also called on the oil industry earlier this month to use its profits to boost refining capacity and retail service station owners, who are expected to pass on the price of electricity to consumers.
By Irina Slav for Oilprice.com
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