Crude Oil Prices Rally on Larger-than-Expected Inventory Decline

The Energy Information Administration (EIA) released its weekly inventory data for US crude oil, showing a larger-than-expected decline in inventories. Crude oil stocks fell by -4.450 million barrels, exceeding the estimated drawdown of -1.085 million barrels.

Gasoline inventories, on the other hand, dropped by -1.173 million barrels, which was less than the forecasted decline of -1.850 million barrels. Distillates saw an unexpected increase of 0.796 million barrels, contrary to estimates of a drawdown of -1.275 million.

The private data released previously showed that crude oil inventories had fallen by -2.6 million barrels, while gasoline stocks rose by +300,000 and distillate supplies decreased by -300,000.

From a technical perspective, the recent rally in crude prices cleared two important levels at $86.53. This area is now a key dividing line for buyers and sellers, with support above it favoring the technical outlook for buyers.