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Crude has been knocked lower this week as worsening global conditions and a series of forecast downgrades have trumped the latest moves in inventories data.
On Tuesday, the American Petroleum Institute reported a 7.23 million barrel decline in US crude stores. This initially boosted oil. The Energy Information Administration report then confirmed this move on Wednesday.
The EIA reported that in the week ending September 6th, US crude stores fell by a substantial 6.9 million barrels. This is more than double the forecasts for a 2.7 million barrel decline.
The data also showed gasoline inventories falling by a further 700k barrels per day. This extended declines from the 2.4 million barrel drop over the prior week.
The report was now all bullish, however, as distillate fuel inventories, which include heating and diesel, came in higher by 2.7 million barrels over the week. They thus extended the gains of 2.5 million barrels over the prior week.
EIA Ups Its US Crude Production Forecasts
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