The EIA's weekly US Petroleum Report, released earlier today, shows the amount of crude oil in commercial storage tanks decreased by about 3.9 million barrels to 487.0 million. This was the first fall since 2nd Jan and against expectations of a 1.5 million barrel increase. Meanwhile, stocks of gasoline rose by a modest 400,000 barrels to 227.8 million.
Today's data provide the best evidence yet that US oil stocks are at least levelling out and maybe about to start to trend lower. What's more, the data also showed a further increase in demand and another small fall in US oil production.
"Today's data has provided further support to oil prices, which have been boosted in recent weeks by continued sharp falls in the US rig count data. However, given that oil prices are now about 40% above their recent lows, there is the potential for a rebound in the rig numbers and in US production. This should limit the upside for prices over the rest of this year." notes Capital Economics
