Oil Price Spikes to $46.96 As U.S. Inventories Fall by 2.3million Barrels

U.S. commercial crude stockpiles dipped by 2.3 million barrels to a total of 519.5 million barrels, the Energy Information Administration reported. The report matched an earlier assessment from industry group the American Petroleum Institute.The EIA and API data were just above a 2.1 million-barrels draw forecast in a Reuter’s poll.

Meanwhile, gasoline stocks rose by 911,000 barrels, compared with the Reuters poll forecast for no change. Distillate stockpiles, which include diesel and heating oil, fell by 214,000 barrels, versus expectations for a 600,000-barrel increase, the EIA data showed.

Brent crude was up 30 cents at $46.96 a barrel by 10:48 a.m. On Tuesday, the contract settled down 30 cents, or 0.6 percent, at $46.66 barrel.

U.S. West Texas Intermediate (WTI) crude was up 16 cents at $44.81 a barrel, having earlier fallen to $43.69, its lowest intraday level since May 10. The August contract expires at the close of trade. The contract for September delivery was up 17 cents at $45.62.