Crude oil trading outlook: WTI futures steady after mixed EIA inventories data

West Texas Intermediate crude was mostly unchanged on Wednesday after government data showed US crude inventories declined almost three times more than analysts had projected but gasoline stockpiles unexpectedly gained, signaling a weakness in demand during the peak summer driving season. Domestic crude production also jumped.

On the New York Mercantile Exchange, WTI crude for settlement in October stood at $93.28 per barrel at 14:38 GMT, up 0.45% on the day. Prices held in a daily range between $93.58 and $92.73, close to Tuesday’s 8-1/2-month low of $92.62 a barrel. The contract lost 0.95% on Tuesday after shedding 1.65% on Monday, closing the session at $92.86.

Meanwhile on the ICE, Brent futures for delivery in the same month were up 0.35% to trade at $101.92 a barrel, having ranged between $102.37 and $101.44, close to Tuesday’s trough of $101.07, the lowest since June 26 2013. The European crude benchmark traded at a premium of $8.64 to its US counterpart, down from Tuesday’s settlement at $8.70.

The Energy Information Administration reported that total motor gasoline inventories rose for the first time in three weeks, having added 0.6 million barrels in the week through August 15th to 213.3 million, defying analysts expectations for a 1.4-million drop. Distillate fuel stockpiles, which include diesel and heating oil, fell by 1.0 million barrels to 121.5 million, compared to a projected 0.3-million decline.

US crude oil inventories fell by 4.5 million barrels last week to 362.5 million, beating analysts forecasts for a 1.75-million drop. Supplies at Cushing, Oklahoma, the biggest US storage hub and delivery point for NYMEX-traded contracts, rose to 20.2 million barrels from 18.4 a week earlier.

Refineries operated at 93.4% of their operable capacity, with gasoline production falling, while distillate fuel output rose, averaging 9.2 million and 4.9 million barrels per day, respectively.

Domestic crude production jumped to 8.577 million barrels of crude oil per day, up from 8.556 million last week and more than 1 million above year-ago levels. Imports stood at 7.459 million bpd, down from 7.846 million bpd a week earlier, while exports were flat at 295 000 barrels per day. Over the last four weeks, crude oil imports averaged about 7.7 million bpd, 4.2% below the same period a year earlier.