NEW YORK (DTN) -- New York Mercantile Exchange oil futures trimmed gains after the Energy Information Administration's weekly oil report showed crude stocks at the Cushing, Oklahoma, supply hub that is also the delivery location for the NYMEX WTI futures contract increased for the first time in eight weeks last week even as total crude oil inventories in the United States were again drawn down.
The EIA report for the week-ended June 12 showed crude stocks declined 2.7 million bbl, surpassing an expected 1.8 million bbl draw though less than a 2.9 million bbl stock decline reported by the American Petroleum Institute late Tuesday. This is the seventh consecutive weekly crude oil stock draw nationwide.
However, at Cushing crude stocks rose 100,000 bbl last week after falling during the prior seven weeks. The Cushing data was bearish for WTI crude prices.
At 10:55 AM ET, NYMEX July WTI crude futures were 18cts higher at $60.15 bbl, cutting gains after posting a four-day high of $61.38 earlier this morning.
NYMEX July ULSD futures were up 3.07cts to $1.9156 open, paring gains after posting four-day high of $1.9488 earlier. NYMEX July RBOB futures trimmed gains to 0.15cts at $2.1260 gallon after rallying earlier in the morning to near a 7-1/2 month spot high of $2.1858.
EIA's report also showed gasoline stockpiles increased 460,000 bbl and distillate supplies were up 113,000 bbl last week. A survey showed distillate stocks rising 700,000 bbl while gasoline stocks were expected to hold steady at the prior week's level.
The EIA reported refinery crude inputs as well as refinery runs both fell last week, suggesting a decline in crude demand.
Oil traders are keeping a watchful eye on downgraded Tropical Storm Bill, which has brought heavy rainfall and flash floods to Texas and Oklahoma, where there are refineries and other oil facilities.
Later today, the Federal Open Market Committee will issue a statement after a two-day meeting. Investors are looking for clues as to when the central bank will hike the federal funds rate. The statement could impact the dollar's value and oil prices.
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