The U.S. Energy Information Administration (EIA) released its weekly report showing higher crude oil prices, but lower crude inventories. Crude oil supplies fell by 8.6 million barrels last week. While the drop was surprising to some, the numbers are still higher than the month-to-month five-year average. It was also an increase of 3.7 million barrels from the previous week. Gasoline inventories were also down by 1.9 million barrels.
Meanwhile, according to the EIA, crude oil production rose 100,000 barrels per day for the second straight week in a row. Production hit 12.1 million barrels per day (bpd).
While crude inventories have slacked off, oil prices are increasing, thanks to OPEC’s production cuts. U.S. West Texas Intermediate crude ended 2 cents higher on Tuesday at $55.50, while Brent Crude, the global standard, rose 45 cents to $65.21 a barrel.
The falling inventories might be attributed to a reduction in import activity. Crude net imports fell to a record low of 2.6 bpd last week. U.S. commercial crude imports also saw a record low of 5.9 million bpd.