Crude Oil Futures Settle Flat
Crude oil futures ended roughly flat on Wednesday with traders weighing the likely impact of Hurricane Laura, and data showing another drop in U.S. crude inventories.
According to the data released by Energy Information Administration (EIA) this morning, U.S. crude inventories dropped by 4.7 million barrels in the week ended August 21, falling for a fifth straight week. That was slightly higher than an expected drop of about 4.5 million barrels.
The EIA data also showed gasoline inventories fell by 4.6 million barrels last week, while distillate stockpiles were up by 1.4 million barrels.
The American Petroleum Institute (API) reported on Tuesday a draw in crude oil inventories of 4.524 million barrels for the week ending August 21, while analysts had predicted an inventory draw of 3.694-million barrels.
West Texas Intermediate crude oil futures for October ended up 4 cents or less than 0.01% at $43.39 a barrel.
Brent crude futures edged down by 6 cents to $45.80 a barrel.
According to reports, Hurricane Laura is expected to make landfall along the Gulf Coast late Wednesday or early Thursday. Texas and Louisiana are sending resources in and evacuating residents out of the storm’s path.
According to the U.S. Bureau of Safety and Environmental Enforcement (BSEE), approximately 84.3% of the current oil production and 60.9% of the natural gas production in the Gulf of Mexico were shut-in.
The material has been provided by InstaForex Company – www.instaforex.com