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The latest report from the Energy Information Administration has added further downside pressure for crude prices this week.
The EIA update showed that US crude inventories fell by 400k barrels last week.
News of a drawdown is typically positive. However, on the back of last week’s 2.5 million barrel drawdown, the market had been expecting a 1 million barrel decline. Therefore, it was disappointed by the news of a weaker than expected draw.
Gasoline Inventories Increase
Other elements of the report were also more obviously bearish.
The data showed that gasoline inventories were higher by 1.75 million barrels over the week. This increase was above the expected 1 million barrel level.
However, distillate stockpiles were far lower than expected. These dropped by 1.2 million barrels over the week versus an expected build of 3 million barrels.
Crude prices have been weighed down due to the outbreak of the Wuhan v...
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