(+) US Oil Weekly Update: Hitting Lowest Seasonal Level Since 1996

U.S. commercial crude oil inventories fell sharply last week, underscoring tightening supply in the market. According to the U.S. Energy Information Administration’s (EIA) weekly petroleum report, stockpiles dropped by 3.2 million barrels to 419 million barrels for the week ending July 18 — more than double analysts’ expectations of a 1.5-million-barrel draw.

At 419 million barrels, commercial inventories now sit 9% below the five-year seasonal average and have fallen to their lowest level for this time of year since 1996. Meanwhile, crude stockpiles at Cushing, Oklahoma — the delivery hub for NYMEX oil futures — climbed to their highest level since June.