SINGAPORE – Oil prices rose above $90 a barrel Wednesday in Asia after a report showed U.S. crude supplies dropped more than expected for a second week, which suggests demand is improving.
The American Petroleum Institute said late Tuesday that crude inventories fell 5.8 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had forecast a drop of 2.4 million barrels. Inventories of gasoline decreased 2.9 million barrels and distillates rose slightly, the API said.
The Energy Department's Energy Information Administration reports its weekly supply data later Wednesday. The EIA said last week that supplies dropped 9.9 million barrels the previous week, the biggest drop in eight years.
moreI can think of a few reasons why API numbers would look this way. (1) Sales increase from the holiday travel season, (2) Less oil is coming through the Cushing hub, (3) API numbers are often inaccurate.
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