The US Energy Information Administration said Wednesday that crude stocks dropped -5.60 million barrels during the week ending December 1st, beating expectations of a -4.10 million barrel decline forecast by an S&P Global Platts analysts’ poll. Furthermore, the figure, outpaced the American Petroleum Institute’s estimated drop of -5.50 million barrels on Tuesday. Gasoline supplies climbed 6.80 million barrels during the week to 220.90 million barrels, blowing past analysts’ forecast for an addition of 1.70 million barrels.
Meanwhile, US crude output continued to rise, with total domestic production at around 9.70 million barrels a day last week, up 25,000 barrels per day from the preceding seven-day period. US West Texas Intermediate crude futures ended Wednesday at $55.97 a barrel, down close to -3.00% for the session. From a pricing perspective, $55.80 a barrel represents the key support zone, a breach of which could see futures retreat to around the $54.00-mark.