The market appeared unfazed by the latest data, which showed a significant weekly decline in U.S. crude stockpiles. The U.S. Energy Information Administration said Wednesday that domestic crude inventories fell by 5.40 million barrels during the week ended August 25, following declines in each of the previous eight weeks. Analysts polled by S&P Global Platts were anticipating a dip of 1.50 million barrels.
Traders expect next week’s EIA data, which will coincide with the time when Harvey hit the Texas Coast, to reveal a large build-up in supplies due to refinery outages. According to Reuters estimates, approximately 4.40 million barrels of U.S. refining capacity was unavailable due to flooding and damage from Harvey, representing almost a quarter of U.S. refining production.