Markets

Crude Bucks Equities, Moves Higher After Unexpected Drop in U.S. Inventories

Crude oil prices are bucking trends in the equities market and moving higher, with the September contract up $1.44 at $80.74, after the government today reported a decline in domestic crude oil and gasoline supplies.

Crude oil stockpiles fell by 5.2 million barrels, or 1.5%, leaving the nation

s 349.8 million barrel inventory 1.5% below year-ago levels, the Energy Information Administration said in its weekly report. Analysts were looking for a 1.8-million-barrel increase for the week ended Aug. 5, according to Platts, the energy information arm of McGraw-Hill Cos.

Gasoline supplies fell by 1.6 million barrels, or 0.7%, exceeding the drop expected by analysts and leaving inventories 4.4% below last year. Demand for gasoline at the pump fell by 3.4% compared with last year at this time in the summer driving season.

Distillate stocks, which include diesel and heating oil, fell by 700,000 barrels, while analysts expected a 1.2-million-barrel increase.

The United States Oil exchange traded fund is at $31.73, up 11 cents, or 0.35%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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