Crude Oil Mixed In Asia After API Estimates Show Surprise Draw, EIA Awaited

Investing.com – Crude oil prices were mixed in Asia on Wednesday after industry estimates on US stockpiles showed a surprise draw, but the market awaits official data to confirm

On the New York Mercantile Exchange crude futures for March delivery rose 0.74% to $63.86 a barrel, while on London’s Intercontinental Exchange, eased 0.12% to $66.20 a barrel.

The American Petroleum Institute (API) said Tuesday that US supplies fell by a surprise 1.050 million barrels last week.

Gasoline inventories declined by 227,000 barrels, while distillate supplies jumped 4.552 million barrels. Analysts expected a build of 3.189 million barrels in crude, gasoline stocks up by 459,000 barrels and distillates expected down 1.419 million barrels.

Supplies at the oil storage hub of Cushing, Oklahoma fell by 663,000 barrels.

The API figures are followed by official data from the Energy Information Administration (EIA) on Wednesday. The API and EIA figures often diverge.

Overnight, crude oil prices settled lower ahead of the inventory estimates and amid a slowdown in refinery activity.

Investor fears of a rise in domestic oil stockpiles comes as refinery maintenance season gets underway, lowering both refinery activity and demand for crude oil while pressuring crude oil prices.

Crude oil production, meanwhile, is expected to remain above 10 million barrels a day as US shale producers ramp up output to take advantage of higher oil prices.

Sentiment on crude oil has turned bearish in recent sessions despite ongoing efforts from major oil producers to curb production – as part of the OPEC-led output cut agreement- and the rise in oil demand growth.

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