US DATA: API crude stocks lower, gasoline posts build

Quantum Commodity Intelligence – US crude oil stocks fell by over 2 million barrels in the week ending 18 August, according to a report released late Tuesday by the American Petroleum Institute.

The latest API release revealed a 2.4-million-barrel drop against analysts' expectations for a slightly larger draw of around 3 million barrels, while the key Cushing storage hub, the delivery point for the WTI crude futures contract, fell 2.2 million barrels.

Despite the fall in crude inventories, oil benchmarks WTI and Brent futures were little changed during early Wednesday activity, as wider macroeconomic concerns dictate price direction.

The shine was also taken off the crude draw with a build in gasoline inventories of 1.9 million barrels, while distillates stocks were little changed.

The weekly API report serves as a forerunner to the closely watched EIA Weekly Petroleum Status Report, which will be published at 1030 EST on Wednesday.

Meanwhile, refiners in the US Gulf are braced for an increase in storm activity as the North Atlantic hurricane season heads into peak activity.