U.S. crude reserves decline more than expected

U.S. Crude Oil Inventories dropped surprisingly by 6.267 million barrels in the week ending June 2, according to the Energy Information Administrations report, released at 14:30 GMT. This is a significant decrease, compared to the preceding weeks 3 million barrels gain. Final value mismatched forecasts of an 800 000 barrel decrease, which caused WTI crude prices to surge above $94 per barrel and Brent oil was shot above $104.

U.S. gasoline stockpiles also fell by a seasonally adjusted annual rate of 366 000 barrels, compared to a decrease of 1.541 million barrels during the week ending May 26. Final estimates missed forecasts of a 1 million barrels increase in gasoline reserves.

On the New York Mercantile Exchange, WTI futures for July delivery jumped to $94.22 per barrel at 14;30 GMT, marking a 0.9% gain for the day.

Brent oil stood at $104.02 per barrel at 14:33 GMT, up 0.75% for the day.

Since yesterday, oil prices found support by APIs oil reserves estimates. According to the American Petroleum Institute’s industry report, crude reserves shrank by 7,8 million barrels in the week ending June 2. Gasoline stockpiles decreased by 1.3 million barrels, but distillate supplies rose by 241 000 barrels.

Andy Sommer, a senior oil analyst at Axpo Trading AG in Dietikon, Switzerland, said earlier for Bloomberg: “The big drop in crude inventories in the API report is supporting things. The market is going to tighten going into the third quarter.” He predicted that Brent oil will trade from $100 to $105 a barrel this month.