Oil futures rose Wednesday, putting them on track to snap a four-day losing streak, after industry data showed a fall in U.S. crude inventories ahead of an official reading on supply levels from the Energy Department’s Energy Information Administration.
The American Petroleum Institute reported late Tuesday that U.S. crude supplies fell by 1.2 million barrels for the week ended Aug. 13, according to sources. The API report also reportedly showed an inventory decline of 1.2 million barrels for gasoline, while distillate supplies edged up by 502,000 barrels. Crude stocks at the Cushing, Okla., storage hub, meanwhile, fell by about 1.7 million barrels for the week, sources said.
“Investors are worried that oil prices went too high during its rallying phase when optimism was sky-high about demand returning to normal. But now, investors are forced to reassess those rosy views and are realizing that demand is actually a little softer,” said Fawad Razaqzada, market analyst with ThinkMarkets, in a note.
Oil price yo-yo. Let's get off the stuff.
Pipeline would help