In the energy market on Wednesday, crude for August delivery sank, closing at $68.67/barrel, down 57 cents. July reformulated gasoline lost 5 cents, to $1.843/gallon.

In its weekly inventory report, the Energy Information Administration said that crude stockpiles fell 3.8 million barrels in the week ended June 19. That was three times analysts’ expectations for a decline of only 1.2 million barrels.

Gasoline supplies went in the other direction, increasing by 3.9 million barrels last week, while distillates rose by 2.1 million barrels. Refineries were operating at 87.1% of capacity, up from 85.9% the previous week, and the highest level since early December.

While the supply data was “mixed,” said Tariq Zahir, managing member at Tyche Capital Advisors, “we do feel both the crude and gasoline markets could see a downward correction in the next few weeks as demand is looking weak.”

But since “crude-oil stocks went down as much as gasoline stocks increased … This report could set up a battle between the bulls and the bears,” said James Williams, of WTRG Economics.

Source: Crude Drifts Lower

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