By Liz Moyer
Investing.com — U.S. oil stockpiles rose less than expected in the latest week, the Energy Information Administration said on Wednesday.
edged higher by 90,000 barrels last week, compared with analysts’ expectations for a build of 659,000 barrels.
stockpiles, which include diesel and , fell 3.342 million barrels in the week against expectations for a draw of 648,000 barrels, the EIA data showed.
were 253,000 barrels. The weekly rose 0.4%, according to the EIA report.
inventories rose by 92,000 barrels last week the EIA said, compared with expectations for a build of 508,000 barrels.
“This is another dataset that should bring some cheer to the bulls in the market, as you can see from the way both and have moved up,” said Investing.com analyst Barani Krishnan. “This U.S. narrative will strengthen the conviction of longs in the market, as the market warms to Goldman Sachs’s bullish-to-the-marrow call for $80 oil amid lingering concerns about Indian and Japanese demand.”
Krishnan said there appeared to be little oil flowing out of the Permian, the premier U.S. shale basin, compared to a year ago.
“That’s partly what’s helping the oil bulls for now,” he said. “Undoubtedly, U.S. production will grow at these prices but it’s doing so at a much slower rate than thought, and that’s incentivizing those who are long the market.”
“The proof of the pudding is in the EIA’s downward revision of production by 100,000 barrels per day for last week to below the key 11 million bpd mark. That’s a verdict on the Permian.”
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