July Brent rallies after API reports large US stock draw

London (Quantum Commodity Intelligence) - July Brent rallied to around $69.70/b by 8.45 UK time, close to its overnight high ahead of the Singapore market close, buoyed by American Petroleum Industry data that showed a large US crude, gasoline and distillate stocks draw over the week to April 30.

The trade body saw crude stocks down 7.7 million barrels, gasoline stocks down 5.3 million barrels and distillate stocks down 3.5 million barrels.

Five analysts polled by Reuters estimated on average that U.S. crude inventories fell by 2.2 million barrels in the week to April 30.

The rate of refinery utilisation was expected to have increased by 0.5 percentage point last week, from 85.4% of total capacity in the week ended April 23, the poll showed.

July Brent was trading at around $68.72/b at 1630 UK time Tuesday.

API stocks change week-ending April 30, 2021

Crude -7.700 million barrels

Distillates -3.500 million barrels

Gasoline -5.300 million barrels

Cushing 0.548 million barrels