U.S. Crude Oil Futures Slump After A Smaller-than-expected Decline in Supplies

Crude oil futures prices dropped sharply on Wednesday after a weekly report showed U.S. inventories declined less than expected, not to mention an increase in gasoline stockpiles and crude production.

July West Texas Intermediate crude lost more than 3.8 percent to trade around $44.71 per barrel on the New York Mercantile Exchange. U.S. government data released by the Energy Information Administration showed that domestic crude supplies fell by 1.7 million barrels for the week ended June 9th, which was well below expectations calling for a decline of 2.3 million barrels.

According to the EIA, total domestic production added 12,000 barrels last week to hit 9.330 million barrels. Gasoline stockpiles and distillate stockpiles also witnessed increases, adding 2.1 million barrels and 300,000 barrels last week, respectively.

Before the release of EIA’s data, the International Energy Agency warned that the global oil glut will persist this year regardless of efforts by the OPEC and some other major oil producers to curb supply.

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