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Inventories Break 15 Weeks Of Surpluses
In its latest update, the Energy Information Administration reported an unexpected drop in US crude inventories. For the week ending May 8th, the EIA reported that US crude stores dropped by 745k barrels.
This was in stark contrast to the 4.1 million barrel increase the market was looking for and comes on the back of 15 straight weekly increases. This is now the first drop in inventory levels since the COVID-19 crisis began back in January.
Regionally, inventory levels at the Cushing delivery hub in Oklahoma, which is the largest in the US, fell by 3 million barrels. Despite the drop, the hub is still over 80% in terms of storage capacity.
Fuel demand, measured via the total-products supplied figure, was up last week. Despite that, the reading is still around 23% lower than the two-year average for the last four-week period.
US Crude Production Falls Further
Encouragingly for bulls, the report noted that US crude production dropped by a further 3...
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