The EIA reported Total Crude Oil Inventories decreased by 4.5 million barrels to 514.1 million barrels for the week ending August 7, 2020, while the expectations average was for a 2.9 million-barrel draw.
The stocks report was bullish to crude oil prices as the draw was greater than expectations, three weeks in a row. With domestic crude production dropping and the decrease in crude stocks, there is now new belief that the market is tightening. Crude oil prices rallied through the trading day and now have “filled the gap” in prices that occurred in mid-March which is often viewed as a bullish signal.
Total hydrocarbon supplies decreased by 6.2 million barrels to 1,446 million barrels.
Crude Oil Production decreased by 300,000 barrels per day at 10.7 million barrels per day.
Total Crude Imports were down 400,000 barrels per day to 5.6 million barrels per day.
Total Crude Exports increased by 324,000 barrels per day to 3.1 million barrels per day.
Total Refinery Crude Runs were unchanged at 14.6 million barrels per day.
Originally Published on August 12, 2020
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