EIA Reports Surprise Gas Stock Gains

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 sharply lower in midmorning trade. This after weekly supply data from the Energy Information Administration showed a surprise build in gasoline supplies in the first week of August while the build in distillates was more than forecast.

EIA data showed gasoline supply rose for the first time in six weeks, up 2.9 million bbl during the week profiled while distillate inventories rose 1.2 million bbl. The data compares with the American Petroleum Institute report Tuesday showing a 3.1 million bbl gasoline supply build and 1.8 million bbl increase in middle distillates.

EIA's reported gasoline supply build was supported by a decline in implied motor gasoline demand, which dropped 532,000 bpd decline last week to 9.346 million bpd.

EIA reported U.S. crude inventories fell by 1.4 million bbl to 407.4 million bbl during the week-ended Aug. 3. The draw was below expectations and far lower than the 6.0 million bbl drop reported by the American Petroleum Institute Tuesday afternoon.

At the key Cushing supply depot in Oklahoma, which serves as the delivery location for the New York Mercantile Exchange West Texas Intermediate futures contract, EIA reported supply fell for a 12th consecutive week, down 590,000 bbl to 21.803 million bbl during the week reviewed.

At last look, NYMEX September WTI futures slid $2.10 to $67.07 bbl, while October Brent futures tumbled $2.05 to $72.60 bbl.

NYMEX September RBOB futures plunged 7.25 cents to $2.0315 gallon, while September ULSD contracts shed 4.66 cents to $2.1225 gallon.

Brian Whary can be reached at brian.whary@dtn.com

(BE)