Published: Wed, December 06, 2017
Money | By Armando Alvarado

Oil drops as industry data show U.S. gasoline stockpiles grew

Oil drops as industry data show U.S. gasoline stockpiles grew

US crude inventories dropped by 5.48 million barrels last week, the API said Tuesday, according to people familiar with the data.

Brent crude futures were down $1.28 at $61.55 USA a barrel approaching noon ET Wednesday, after reaching a session high of $62.93 US, while USA crude futures dropped $1.33, or 2.2%, to $56.33 U.S.

Crude oil futures are trading flat to lower early Tuesday after a bearish private industry report drove prices lower on the opening.

U.S. crude oil imports averaged 7.2 million barrels per day last week-a decrease of 127,000 barrels per day from the previous week.

Motor fuel inventories climbed by 9.2 million barrels last week, the American Petroleum Institute was said to report.

Distillate inventories, too, saw a build this week, up 4.259 million barrels, against a forecast of a 548,000-barrel build.

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USA gasoline demand fell by 871,000 bpd (barrels per day) or 9% to 8,724,000 bpd on November 17-24, according to the EIA.

Traders expect data from the API and EIA to show crude stocks fell 3.5 million barrels last week. Net petroleum supplies fell by about 2.5 million barrels because of dips in other oils and products, according to the Energy Department.

Last week's announcement from OPEC and its allies that production cuts would continue through to the end of 2018 had already been priced into crude.

The price for Brent crude oil was down 0.94 percent from the previous close to trade at $62.27 per barrel as of 9:15 a.m. EST.

For the past week, crude imports averaged 7.2 million barrels a day, down by 127,000 barrels a day compared with the previous week.

Exxon Mobil Corp. (NYSE: XOM) traded up less than 0.1%, at $82.90 in a 52-week range of $76.05 to $93.22. It ranks first in oil futures trade.

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