US CRUDE OIL INVENTORIES DROP
The US crude oil inventories drop sharply. The U.S. Energy Information Administration (EIA) announced that commercial crude oil inventories in the country fell 10.6 million barrels (2 percent) last week to 526 million barrels. Market expectations were that inventories would increase 360 thousand barrels. The country’s crude oil stocks had increased by 4.9 million barrels the previous week.
Strategic crude oil stocks, which are not included in commercial crude oil stocks, remained stable at 656.1 million barrels. In the period in question, US gas stocks increased by 700 thousand barrels (0.3 percent) to 247.4 million barrels. The market expectation was that gasoline stocks would decrease by 730 thousand barrels. Gasoline stocks had dropped by 1.8 million barrels in the previous week.
US crude oil imports decreased by an average of 794 thousand barrels daily compared to the previous week, while falling to 5.14 million barrels, while oil exports increased by 218 thousand barrels a day on average, reaching 3.21 million barrels.
According to EIA’s “July 2020 Short-Term Energy Outlook”, the US average daily crude oil production is expected to be 11.6 million barrels this year.