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  • EIA reports larger-than-expected draw in US crude oil inventories.
  • WTI extends daily rally with the initial reaction.

The weekly report published by the US  Energy Information Administration (EIA) revealed that commercial crude  oil  inventories in the US decreased by 10  million barrels in the week ending August 23  compared to market expectation for a decline of 2.1  million barrels.

With the initial market reaction, the barrel of West Texas Intermediate rose to a daily high of $56.70 but retreated slightly. As of writing, the WTI was up 1.35% on the day at $56.50.

Key takeaways from the press release

“Crude oil imports averaged 5.9 million barrels per day.”

“Refineries operated at 95.2% of their operable capacity last week.”

“Gasoline production increased last week, averaging 10.7 million barrels per day.”