The U.S. crude oil inventories dropped for the week ending May 17 by 338 000 barrels to 394,6 million barrels, down from 394,9 million barrels in the preceding week. This is below the forecast, which predicted a decrease to 394,5 million barrels. WTI crude futures slipped 1,1% to $95.12 on the New York Mercantile Exchange after the data was published.
Brent for July settlement also decreased by 74 cents, 0,7%, and traded at $103,17.
Phil Flynn, senior market analyst for Price Futures Group in Chicago, said for Bloomberg: “There’s plenty of supply.”
U.S. gasoline inventories rose more than expected according to the Energy Information Administrations report. Stockpiles rose by 3 million barrels, compared to the forecasts of a 0,1 decrease.
Oil prices found some support and rebounded from the days low following Ben Bernankes testimony to the U.S. Joint Economic Committee where he stated that the bond buying will continue and the program will remain in place as long as it is necessary and that the monetary policy is providing “substantial benefits”. Bernanke said: “A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further.”
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