Oil prices fell on Tuesday after a one-day rally, with United States crude pulled down more than 2 percent by weaker stocks on Wall Street and skittish sentiment ahead of the expiry of the spot futures contract. Distillate production averaged 5.1 million barrels a day last week, about flat compared with the prior week’s production.
Total gasoline inventories increased by 1.4 million barrels last week, according to the EIA, and remain in the upper half of the five-year average range.
Crude inventories fell by 1.9 million barrels in the last week, compared with analysts’ expectations for an decrease of 533,000 barrels.
Both markets followed crude higher, but diesel, buoyed by the surprise draw, saw stronger gains.
The United States Oil ETF (NYSEMKT: USO) traded up about 2.1%, at $15.22 in a 52-week range of $12.37 to $35.62.
That’s a much larger decline than markets were expecting. Mr. Donovan noted that draws in stockpiles recently have led to only momentary spikes in prices.
While US output has started to ease, many believe it is not enough to soak up a flood of oil coming from elsewhere. Despite brash statements by U.S. producers and misleading analysis by Raymond James, low oil prices are killing tight oil companies.
Official data from the US Energy Information Department is out this morning.
A surprise currency devaluation in China sent global markets into a tailspin in early August.
The West Texas Intermediate for October delivery moved up 2 USA dollars to settle at 46.68 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery increased 1.45 dollars to close at 48.92 dollars a barrel on the London ICE Future Exchange.
Compared to the same week a year ago, the current diesel average price is down $1.285.