US crude turns lower ahead of EIA weekly report

The US crude turned lower as the US market opened on Wednesday, on profit taking after hitting a 3-month high earlier, after the American Petroleum Institute showed in preliminary an unexpected drop in US crude inventories, and ahead of EIA weekly report later today.

The US crude fell 2.5% to $35.91 a barrel, after it opened at $36.83, and hit an intraday high and the highest since March 9 of $38.15.

The US crude gained 3.6% yesterday, posting the fourth daily gain, on hopes for OPEC-Plus coalition to extend its output agreement.

The American Petroleum Institute (API) revealed yesterday in preliminary data the US crude inventories fell 0.483 million barrels during the week ending in May 29, beating than forecasts of a rise by 3.5 million barrels, in a positive sign of the demand and consumption levels in the US after easing the coronavirus lockdown.

While the US Energy Information Administration (EIA) will release today the official data on inventories and production levels in its weekly report, with forecasts for inventories to rise by 3 million barrels.

As for the US production it fell 100,000 barrels to 11.4 million barrels per day, the lowest level since the week ending July 19, 2019.