Oil Down After EIA Data

OLD BRIDGE, N.J. (DTN) -- Oil futures nearest to delivery traded on the New York Mercantile Exchange and Brent crude on the Intercontinental Exchange continued lower in late morning trade. West Texas Intermediate is trading near a two-week low despite bullish data from the Energy Information Administration showing commercial crude oil stocks declined 12.6 million bbl during the week ended July 6, more than an earlier estimate from the American Petroleum Institute showing a 6.707 million bbl inventory decline.

EIA said commercial crude oil inventories declined to a three-year, four-month low of 405.2 million bbl during the week profiled, 3% lower on the week, though still down 18.2% from year ago levels. Stocks at Cushing, Oklahoma, the delivery point for the NYMEX WTI contract, declined for an eighth straight week, down 2.062 million bbl to a fresh 3-1/2 year low at 25.718 million bbl. API reported a 1.952 million bbl decline at Cushing.

U.S. crude exports fell 309,000 bpd during the week profiled to 2.027 million bpd, while imports plunged 1.624 million bpd from a nearly 1-1/2 year high to a 7.431 million bpd two-month low.

Gasoline inventories dropped 694,000 bbl to 239.0 million bbl, significantly less than API's expected 1.59 million bbl decline as exports jumped 487,000 bpd to a better than seven-month high of 1.186 million bpd. Implied demand slid 594,000 bpd from a near record high to 9.275 million bpd, reflecting pre-stocking in the previous week leading up to the Fourth of July holiday. Gasoline production was reported at a record high 10.699 million bpd, up 388,000 bpd.

EIA said distillate stocks rose 4.1 million bbl to 121.7 million bbl, significantly higher than API's estimate for a 1.952 million bbl build. Distillate fuel supplied to market fell 321,000 bpd to 3.805 million bpd.

At last look, NYMEX August WTI futures were down $1.43 to $72.68 bbl, while ICE September Brent crude futures sunk $2.10 to $76.61 bbl. NYMEX August RBOB futures were off 3.15 cents to $2.1288 gallon, while August ULSD was down 4.54 cents gallon to $2.1764.