WTI futures jump as DoE data reveals drop in domestic output

Oil futures snapped higher on the heels of US government data showing a drop in domestic oil production, although crude stockpiles did edge higher.

Over the week ending on 23 June, domestic American production of crude shrank by 100,000 barrels to 9.25m barrels a day, almost evenly split between falls in output from Alaska and the lower 48 states, according to the Energy Information Administration, the US Department of Energy's statistical arm.

Meanwhile, commercial US crude oil inventories rose by 100,000 barrels last week to reach 509.2m.

In parallel, gasoline inventories were down by 900,000 barrels, while those for distillates decreased by 200,000.

At an average of 8.0m barrels a day, imports of crude oil on the other hand were up 140,000 b/d during the reference week in comparison to the week before.

Refineries operated at 92.5% of their capacity last week, the EIA said.

As of 1716 BST, front month West Texas Intermediate crude oil futures were advancing by 0.87% to $47.06 a barrel on the NYMEX.