The latest American Petroleum Institute (API) weekly inventory data recorded a very substantial draw of 7.5 million barrels in the latest week after the 1.4 million barrel build the previous week.

There have been substantial API draws in two of the last three weeks and the latest data will support market sentiment, although the official data on Wednesday will still have an important influence and any build would be a significant setback to confidence with further high volatility likely.

There was a further substantial draw in gasoline stocks of 2.5 million barrels, the third successive week of draws above the 2.0 million level. There was another increase in distillate inventories, this time of 1.4 million barrels, maintaining the pattern seen this month.

Oil prices were again subjected to volatile trading on Tuesday with prices sliding to the $43.20 p/b before rallying to highs above $44.10, and then trading in a wide range as there was further rhetoric surrounding a potential production deal.

Source : QNA