Stockpiles of U.S. oil inventories dropped for the second straight week, the Energy Information Administration reported.
Oil prices remained higher following the report, with WTI futures climbing more than 3%.
Oil inventories fell by about 5 million barrels for the week ended May 15, the EIA said. That compared with expectations for a build of about 1.15 million barrels, according to forecasts compiled by Investing.com.
Cushing hub inventories fell another 5.8 million barrels, almost aligning with the decline in total inventories.
“I think we can take our eyes off Cushing as it’s no longer a hot-button issue — the tanks aren’t going to blow there anytime in the near future,” Investing.com analyst Barani Krishnan said.
Gasoline inventories gained unexpectedly by 2.8 million barrels, versus forecasts for a drop of about 2.1 million barrels. Distillate stockpiles rose by 3.8 million barrels, compared with expectations for a build of about 1.43 million barrels.
“The more forward-looking meaningful numbers are in products,” Krishnan said. “Gasoline shows that refiners continued to ramp up gasoline production last week in anticipation of some return at least in weekend road travel for the upcoming Memorial Day weekend.”
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