Crude inventories for the week ended August 28 came in lower by 372,000 barrels, well below a Bloomberg survey estimate for a drop of 900,000 barrels. Meanwhile, gasoline inventories posted a sharp drop of nearly three million versus calls for a fall of 900K. Countering the move, Distillates increased by nearly 1.2 million in the week. Other data included in the release showed capacity utilization at refiners climbed to 87.15% from 84.09% while supply of oil remains 13% higher from the previous year.
Responding to the data,oil traded lower by more than one percent to under $67.50 but has since returned to positive territory for the moment. Elsewhere, contract for gasoline delivery rose more than one percent while natural gas jumped more than two percent. In recent weeks, crude’s move has been tempered by resistance at $75 with downside consequences evident in the Canadian dollar, America’s largest trading partner and a key supplier of oil for the nation.