EIA's Inventories Data Sends Oil Higher
The price of oil rose Tuesday afternoon after the American Petroleum Institute's weekly data announcement showed an inventory draw of 3.8 million barrels, which came as a surprise as analysts were expecting a build of around 2.4 million barrels.
On Wednesday, the Energy Information Administration reported its data which echoed the American Petroleum Institute's.
The EIA said that crude oil inventories for October fell 5.2 million barrels versus a consensus estimate of 2.42 million build. This also marks a reversal from September's data, which showed a 4.90 million barrel build.
The price of WTI crude oil rose nearly 3 percent and hit $51.87, which marks the highest it has traded at since July 16, 2015.
The EIA also said that gasoline inventories for October rose 2.47 million barrels compared to a consensus estimate of a 1.29 million barrel decline. Last month, the data showed a decline of 1.90 million barrels.
The EIA reported that its distillate inventories for October fell 1.24 million barrels, nearly in-line with the consensus estimate which called for a decline of 1.25 million barrels. Last month, inventories fell 3.70 million barrels.
The next important data set to watch out will come on Friday when Baker Hughes will reports its weekly oil rig count.
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