DJ Oil Rises as US Inventories Surprisingly Decline

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DJ Oil Rises as US Inventories Surprisingly Decline

WTI oil prices erase earlier declines and rise 0.6% to $83.45 a barrel after a weekly EIA report that was bullish compared to both forecasts and an earlier report from trade group API. EIA says US crude inventories fell by 431,000 barrels last week, which compares to API’s report 3.3M-barrel rise and to forecasts in a WSJ survey for a 700k-barrel increase. Fuel inventories also fell, US crude production bullishly slipped by 100k bpd to 11.3M bpd, and implied gasoline demand soared to 9.6M bpd. “The report negates the API data,” says Peter Cardillo at Spartan Capital. “Bottom Line: Bullish with $85 Spot Oil nearing.